Islam is an utterly legalistic framework with practically no provision for the exercise of common sense. This makes them very prone to be caught in a catch-22 logic trap.
It is haraam to write a koran in blood, and it is haraam to destroy any koran.
Good luck with that one, fellas...
You know... on reflection... rather than destroying it, I think maybe the best play is to turn it over to the national Iraqi museum. It doesn’t need to be on display (yet) but it should be preserved as a unique historical artifact that is emblematic of a time in their history.
Like some similar (if even possible) artifact from Hitler in Germany. Sometimes, detestable things should be preserved and their lessons not forgotten.