So I claimed a iPhone 7 from a large company never arrived, they refunded me and now they are investigating me. They said if I pay them back or give the iPhone back before tomorrow morning they'll close the case, and if I don't they will be contacting the police with the IMEI. I sold the phone on eBay a month back and I assume they are using the phone so the police could go to the owner of the phone and then to me.

Should I just give them back the £600 or risk the police won't give a shit about a phone?