I bought an iphone 5s at auction new and sealed, but once i set it up it turns out its blacklisted :/

i bought an iphone 5s at auction new and sealed, but once i set it up it turns out its blacklisted is there anything Apple can do I still have the receipt for it

If you got it from eBay open up a case but review the details of the auction prior to doing so.  Sometimes in the details it'll say in very small print what model or "will not work in the USA."
Another option you have is this:  Find someone who will buy it from you for use overseas.  Depending on the amount you paid, you may actually make money on it.  Example, I do this for not for blacklisted phones.  I have a contact in Bolivia and iPhones sell like hotcakes!  Again, it's all on who you know.
Check on Craigslist or Ebay for unlocking or using a blacklisted phones in the US.  Some hackers/CPU nerds can find a way to flash your phone to work.  Not sure how that works but if returning it fails, that may be your only other option.

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