It wasn't stolen, it was just abused. The key probably got stuck and the PO didn't know how to remove it properly so he hacked at it until he got it off. He then replaced the tumblers and key from another car. I'd revert back to the VIN key but my trunk lock was also destroyed and I have a whole donor car set of locks.

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'88 300TE, 175k, black RENNTech 3.6L Recaro C's AMG 1 SOLD
'92 500E, 110k, Spruce green, stock SOLD
'94 E320 Cabriolet, 130k, E500 wheels, Emerald green SOLD
'94 E320 Cabriolet, 110k, black, stock, SOLD
'88 300TE, 229k, dark grey, SOLD
'90 300CE, 212k, white, new paint, SOLD
'91 300E, 209k, white, rebuilt head SOLD
'74 914-6, grey, 2.7L 325hp twin turbo Audi conversion