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Phones that are reported stolen can be bought back from the shop for what it was bought in for, sometimes after a long period involving restitution.
This phone has not been reported stolen. iCloud is not where you report stolen phones. You report stolen phones to the carrier, who locks them using the international serial number. Then you report them to the police, who then check them against our database of stuff.
The phones have been getting more and more locked down, but there's no way we would ever implement anything complicated. If a thing has value it's bought in, if it doesn't, it doesn't. Locked phones still have value, though much less than a phone that's registerable. I guess people are using them for parts.
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