Can I Sell an iPhone that's iCloud Activation Locked

Have you attempted to contact the person that sold you the phone again?

As far as recycling, I do not believe you could do that, since the purpose of Activation Lock is to prevent and protect stolen devices, and despite your explanation, it would be like they were trying to recycle and reward you for a device that cannot be used. While I'm just a user like you, you can contact Apple if you wish to find out.

Apple's recycle and trade in program is actually through a third party recycler, BrightStar (https://reuserecycle.abbti.brightstarcorp.com/Iphonehome.aspx). If you read their FAQ, you must disable find my iPhone on any device to be eligible. If you try and trade it in at an Apple store, the employees there will insist that find my iPhone be disabled as well.

So no, you will get nothing for your Activation Locked device. Even other buyers like Gazelle.com and Amazon.com's recycle program require, as specified in their terms, that Activation Lock be disabled to be eligible for any compensation for a used Apple device.

You may be able to sell it privately for parts, but be sure to be open and honest that it is Activation Locked and thus only useable for parts.