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This is a well known scam. It has been posted about at the Amazon boards, Kindle Boards, and here. Even registering the Kindle when you purchase it does not negate the possibility that it will be shut down later. There have been cases where the Kindle was registered for a day and then went dead. It depends on when the person reports it.
Case in point. My Mom lost her Kindle, it might have been stolen, we don't know. The last time she had it was when she was visiting me. I called home a couple of weeks later when I saw that her Kindle was no longer registered to my account. She told me that she had been looking for it for a week. When I asked her when she last remembered using it, it was on vacation at my house. So she could have had it stolen at an airport or left it on the plane.
I called Amazon as soon as I knew it was lost and reported it lost. They asked a bunch of questions, when did you buy it, when was it lost, and then personal account info only I should have had. After five minutes, they bricked the Kindle.
In this case, someone could have found my Mom's Kindle and been using it for a couple of weeks before it died. Or sold it on EBay or Craigs List and that person then lost the use of the Kindle.
I would not buy a Kindle off of EBay or Craigs List for this very reason. Even if it comes in the original packaging and can be registered it could still be reported stolen later that day. If it comes without the packaging and the charger sold with it, it could be stolen or lost and deactivated at any time. Then you are left with a crippled device.
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