Musannaf Ibn Abi Shayba 19:901

Abu Bakr narrated to us, he said: 'Amr ibn 'Ali ibn 'Ata' ibn Muqaddam narrated to us, from Hajjaj, from Makhul, from Ibn Muhayriz, from Fudalah ibn 'Ubayd, who said: I asked him about hanging the hand of the thief around his neck. He said: "The Sunnah is that the Messenger of Allah, may Allah bless him and grant him peace, cut off the hand of a man, then he hung it around his neck."