There are hundreds of iPhones (and many hundreds of other phones of all types) that are being sold as "bad imei" on eBay. It's good the sellers are "honest" about it but where do all these phones come from? These all couldn't be phones that people claim they lost, got a replacement for, and then are trying to sell them ... or could they? If so there are an awful lot of easily traceable insurance fraudsters out there. There has got to be an explanation for most of these devices other than the obvious .... insurance fraud.