Here is what I see...
Worst case scenario it's a fake chain. Remove the chain and slip that nice K&M back in the scabbard and it's worth more than $3660. Maybe repaint, maybe not.
Next scenario... real chain added later to the scabbard. Remove chain and sell it separately and you have reduced the cost of a nice K&M to $2k+.
Best scenario... original type II chained scabbard and a nice K&M dagger. A bargain.
![Big Grin](http://daggers.infopop.net/infopop/emoticons/icon_biggrin.gif)