I think there is precedent for giving back paintings, isn't there? For example, many paintings looted by the Nazis ended up in museums and private collections of people who may have paid for them in good faith. Nevertheless, the true owners (or more likely their descendants/heirs) have been suing successfully for their return. Here you do have 2 sets of victims, so you have to prioritize them. It seems as though the original victim is the one who gets restitution. While there is no perfect solution, this seems like the best possible one.
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