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How can you return it to them? Or offer to buy it (again) or ask them to remove device from their find my? There should be a forum where people can find their phones obtained by good citizens trying to return their lost item.
iPhone 7 Plus
Maybe you were not aware that users can post a message on their phone with instructions on how to contact the owner if the phone is "found".
If your iPhone, iPad, or iPod touch is lost or stolen - Apple Support
That being said, Apple does not get involved with lost or stolen phones. In most cases, your best plan would be turn the phone over to the police, so they can match up the phone with reports of stolen phones.
Maybe you were not aware that users can post a message on their phone with instructions on how to contact the owner if the phone is "found".
If your iPhone, iPad, or iPod touch is lost or stolen - Apple Support
That being said, Apple does not get involved with lost or stolen phones. In most cases, your best plan would be turn the phone over to the police, so they can match up the phone with reports of stolen phones.
Turn it into the police.
When you bought someone’s iPhone unbeknownst to you it was stolen/lost
