Rimene, a 34-year-old shearer from Masterton, pleaded guilty to stealing the medal in the Masterton District Court yesterday and was remanded on bail until March 2.
Rimene had been asked to steal the medal on behalf of someone else, but became scared after learning of the family's warning, Mr Bysouth said. "He started to get the heebie-jeebies about it so he arranged through a friend to bring it back to the museum.
"He thought he would be cursed for the rest of his life."
Thieves should think twice and consider returning stolen items, he said.
"It's never too late to have a change of conscience and think 'can I return this property somehow?'"
"For a victim, often it's a lifetime of collection to them ... it has a massive importance."
Officer in charge of the case Constable Joe Nelley said it was good to see belongings returned to the victim.
"It's often the case that we can apprehend the offender without getting the property back, so it's a double win this time."
Detective Senior Sergeant Scott Miller said the theft had attracted a high level of public interest.
"It was not popular at all with the community and with all areas of the community ... which was part of why the thief gave the medal back."
Rimene had admitted to being "uneasy and embarrassed about it", Mr Miller said.
In its quarterly update to the Masterton District Council on Wednesday, Aratoi reported its security cameras will be upgraded to a more sophisticated system which will make faces much easier to identify.
In addition, steps have been taken to ensure cases are more secure and its security system is to undergo an audit.
Although it was returned in December, the medal and the other Tunuiarangi taonga, which includes a carriage clock and a ceremonial sword, have been removed from display and will not be returned until the security audit is completed and the family are happy for them to be displayed.
A karakia will be said over the taonga and the museum before the items are put back on display.