Compromised RuneScape Account

I sold a RuneScape account to a user here on Sythe.

He had an emergency IRL and requested a refund but I did not want to give him the refund because I felt as if it would make the account harder to sell.

He went ahead and sold it another user. This user claimed that I recovered the account and that he got scammed. The player I sold it to stated he refunded him but I did not recover the account, the RuneScape account is still linked to his email; I have proof that it is still linked to the third party's account.

I have made no attempts at all to recover it, I am in contact with the original person I sold the account. Do I have the authority to recover the account and return it to the original person I sold it to?
The person I sold it to seems like a decent guy who has just been getting a really shitty end of the stick via sythe and I feel awful. Is it ethical to do so?

EDIT:

ALSO HOW DO I KNOW THAT THE SELLER I SOLD IT TO IS NOT LYING?

I honestly want nothing to do with this account but it is really hurting my reputation for future buys/sells.​