What do do with a blacklisted iphone?

I bought an iphone 5 off someone i fully trust. I know for a fact it wasn't theirs he was selling for someone. As my blackberry took a standard sim i ordered a nano sim as i needed it to activate it. After 3 days of desperation i cut my standars sim to fit the iphone. It activated it but i got no signal so i figured i cut too far and ordered a new sim. After it arrived i topped up and realized it was blocked as i could use internet but not calls, a shop also confirmed it. When i took it off of him it was ios6 which kinda leads me to believe it kinda was an unwanted upgrade as if it was stolen it would run ios7 right? Bare in mind it was boxed up and everything. The company said they can unblock it if they can prove it isn't stolen. Now the origin owner has asked for like 3 days to get time to do this. He wud have the decencey to prove his innocence and do it straight away. Obv my mum will need mynumber soon and i can't tell her its blocked or i'm dead. I can trade someone like in USA but how do i know i won't get scammed? Somebody please help me!

No one wants a blacklisted phone, it can't be used.

A blacklisted phone can't be unlocked without the registered owner verifying they bought the phone legally

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