That was the problem, the person who sent the coin treated the transaction like a bank transaction. Normally, you could send money through someone's bank account, and the funds can be withdrawn even if the account is dormant or restricted. In some cases, it could be recovered if it was sent to the wrong account since every account holder is known by the bank.
I am really sorry to see what you wrote, that shows you did not understand about bank system and Bitcoin. Let's look at details.
- With bank system, if your ban account is dormant but you still have access to it, you can withdraw your money. There is chance of bank will terminate your bank account if it was inactive for too long time. In another case, if your bank account was restricted, I am quite sure that you can not withdraw your money from it until a day your appeal was approved by that bank and your bank account was recovered to normal status.
- With Bitcoin, if you have private key, you can access your bitcoin. Surely you as a sender must ask the receiver that whether he still has access to that wallet. Interestingly, with Bitcoin non custodial wallets, you can let them inactive any time you want and nobody can terminate your wallets.
The requirements of KYCs in the bank sector and every other centralized platforms that facilitates on transactions is the testament that inactive/domant accounts or lost of access due to lost of personal keys or informations can be retrievable and not limited to the centralized crypto exchange platforms.
So even when funds are sent in such account the beneficiaries can still awake the account by following operatives guidelines but not applicable to decentralized platforms.
So haven to say @Die_empty was right, I will back it up with my experience as I quote.
This happened between an uncle and I during my school days who sent money in my dormant back account.
And that mistake was amicably handled and rectified due to the fact it was a Centralized banking system. So the fund did not go forever like that of my friend and his cousin with their transactions using the non custodial platform.
So when a bank restricts users from access account due to dormancy or inactive, it can still be revalidated but when account has been restricted due to illegal activities such as scam, then there is no accessibility to the account but that is not the case here but the lost of the user seed phrase to have access to the wallet again regarding it is a non custodian platform.