For sure don't scrap them, but turn them over to an engine rebuilder or someone that can use the blocks and parts.
I once paid $10 for an engine that looked like it was pulled from the river bottom. I should have left it, because it was total junk, and the only parts I could save was the front and side cover and the bolts for them.
The cylinders were all badly busted and had been welded and sleeved many years ago. The inside of the block had a couple quarts of sand, and every single moving part was rusted beyond all hope of removing them. I used a plasma cutter to cut the side of the block to use as a jig to make engine stand mounts, and the rest went to the junk yard.