Carrier iPhone 6 reported stolen/lost but still works?

[Zaft]

Here is the deal, I have an iPhone 6 that I bought new shrink wrapped from ebay around april this year.
I have sprint and wanted to trade the phone in to lease the 6S for $5 a month.

The rep at the store told me the phone is coming up flagged as stolen/lost. I checked swappa and other sources and yes it is fagged. But how is the phone still working on sprint then? Shouldn't the phone be disabled? Sprint is confused as well.

Any ideas here?

 

[iphonedude2008]

Maybe sprint doesn't check the blacklist after it's been activated? Only thing I can think of.