What should I do with this blacklisted phone? topic

Long story short, this kid I know found an Optimus L5 outside, last summer I think, and instead of reporting it, he kept it. He used it for some time until the phone got blacklisted here in Europe. He gave it to me now. It is already blacklisted, so it can not be used as a phone. What should I do with it? Should I take it to the police? Or if I keep it, then can someone track it if I use GPS or WiFi? I already put new firmware on it, if that helps.

Thanks!