Not sure if already mentioned but deorio pointed out something interesting, the reason the people who donated feel mislead is because they did donate to a lawsuit over fake high score allegations and those funds were them used in the apollo suicide lawsuit.
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Basically
1- karl gets sued for the suicide acussation, doesn't e-beg initially and uses his own money to fight it. (But isn't transparent with what the lawsuit is about)
2- billy threatens a second lawsuit over cheating, karl opens a gofundme for legal cost but billy doesn't go through with it.
3- money from the gofundme is used in lawsuit 1.