I gave it to the King of Worms because his reasoning seemed the safest to me. Being a friend of the Emperor, I definitely wouldn't have given to any of the Iliac Bay rulers. The other option would have been the Underking, but I felt he was a bit crazy and perhaps still had a grudge against the Empire, so I didn't want to give it to him. Giving it to the King of Worms seemed the best option, because he just disappears with it and doesn't use it to cause massive harm. Even though I was a friend of the Emperor, I didn't want him to have it because that would just renew the cycle of death and destruction started by Tiber Septim. My character is a benevolent wizard, after all.