This is a perfect example of why we should all follow the "innocent until proven guilty" idea. There is no proof, no chance for the agency to refute claims, etc.
Convenient that they are also asking for more financing.
And if the other side has "cut off all communication," I don't know how you can expect them to not be one-sided.
Regardless, if the statement “we received none of the money” is true. There is definitely something bad going on here.
If I had an extra $1,000 in my account, I might accidentally spend it, but I could replace it eventually. If I had an extra $50,000 in my account, that would be much harder to replace, but I'm not sure how I could with a straight face say I spent it accidentally.
(https://medium.com/@jeff_52578/how-a-failed-kickstarter-camp...)
is a non-response of the best sort. It does absolutely nothing to dispel the presumption of guilt, though, and if anything, merely adds weight to the "you aren't responding because you're guilty" mindset.
As for “It’s not true, facts are X, Y, and Z.”, well, I'm Not A Lawyer. I presume that's a bit like a coach for a sports team giving a news conference to tell everyone which strategies and plays they're going to be making in the upcoming game. Facts can be disputed, procedural rules can get facts excluded, and so forth. Whether or not it is a "far better" strategy (weighing PR versus court battle) is too fuzzy for a lay person to judge accurately, I think.