Is there a market for stolen BTC?

I had BTC stolen awhile back. The person who ultimately received it(seller of physical goods) said they received the BTC for the sale of goods to another party(buyer of goods). This other party(buyer of goods) apparently purchased my BTC from another person(seller of stolen BTC) and used this to pay for the goods. Just like if you sold a car and someone paid you cash and it turned out the cash was actually from stolen proceeds, you could be innocent.

Whilst I'm 95% certain it's all BS and the person with the BTC now is the person that stole it, is there actually a market for selling stolen BTC at a heavy discount? There's no reason to buy BTC off an exchange unless you were getting a big price saving. There would also be risk involved as you'd not want to send the BTC until you received the cash offline, unless there is a lot of trust. But this would mean the seller of the stolen BTC would be losing out on full market value, unless they were not able to cash out on exchanges for whatever reason due to KYC and limits in opening new accounts in their country etc.

Just like a thief with a $1k tv would be happy to offload it at $300, does this happen in BTC/crypto world or there is no reason to not sell your stolen funds at full market value?