Can you even hold GFM money when the stated intention of the fundraising is explicit and it's not being honored?
GoFundMe pays out as the donations come in, it's not one that holds things until the goal is met. Any donation to a GoFundMe means the person gets the money immediately. I suggest everyone keep this in mind regarding GoFundMe's in general versus other services. Fraudulent GoFundMe's are not allowed on the service. They do not really police them though, especially not high profile ones. (I wonder if the fact they get a cut has anything to do with this?)
Wasn't she supposed to sue the police with that? And if she makes 6 figures, could she not afford to do that herself?
No, there was never any lawsuit against the police that could happen, Canada is basically the same here as the US, police can't be sued for reacting appropriately to a false crime. That's why it's illegal to falsely report crimes.
For that matter, there's also no lawsuit against Kiwi Farms that could happen. There may be grounds for suing whoever sent the false report (unlikely, what are the damages?) but that will require the police to identify that person at some point which is also doubtful to happen.
The London Police statement seems to contradict her story, too (no pointing guns at her face, no forced entry)
The contradiction is with the media reports and quotes given to those, Keffals was honest on stream (I obviously don't vouch for or endorse anything else that may be posted by whoever this Twitter account is):
https://twitter.com/NepSwirlRedux/status/1563934260074975232