I am pretty sure that it was Paypal who paid me the money back, because his account had disappeared. He refuses to reply to me, either through the claim I made him on Paypal, or through contacting him through eBay. I am pretty sure this means that he doesn't want the phone back.

If anything, it is not stolen, it belongs to Paypal, and that being the case, they haven't asked me for it or mentioned it at all.

Thanks for the advice though.