Is this in the UK? As I thought goods remain the property of the original owner even if bought in good faith. An innocent victim has no claim on the goods but does have grounds for a civil claim against the person who sold it and so on up the chain.
Yes, in the England but not sure if the same applies elsewhere. . The default position is the original owner and the innocent victim who bought the stolen goods has recourse from the seller if they find them as you correctly stated. There are some nuances. If the innocent buyer can ask the Police Officer handling the case for a referral to the Force Solicitor for consideration. They would then go for a disposal inquiry. The main consideration is paying fair value.
If the stolen property was pawned and kept as security for a loan, the Police will have notify the lender at the end of the case. The original owner typically has pay off the lender's loan if they want it back or it goes for disposal inquiry.
I expect 99% of people who buy stolen property innocently pay less than fair value and the person selling it wants a quick turnaround so no attempt is made to lay a claim.
Here is something else. If the innocent party has upgraded the groupset, the original owner must compensate to regain possession even if the bike was not purchased at fair value.
