Malicious allegation?

[Gksmith]

So my daughter signed up to do the world challenge 2019 to Tanzania. World challenge is basically an adventure holiday broker that are supposed to help empower your child to earn the cost of a ‘trip of a lifetime’.
Unfortunately my daughter had to pull out of this as she is suffering with severe anorexia and would not be physically well enough to partake in the trip. Several family members gave money direct to My daughters world challenge account and several gave Her loans with which to purchase materials to try and earn extra money. I myself spend several hundred pounds.
As part of the contract world challenge kept 10% of the cost of the trip, £300, and reimbursed the rest of the money paid to me. I paid off my family that gave loans for investment and made sure that I paid off the loan I took out. There was not enough money to reiemburse everyone.
My daughter subsequently decided she wanted no more contact with her paternal family. This was unrelated and her choice, she is nearly 15 and more than capable of making these complex decisions now.
Here is where is gets complicated.
I received a phone call from the police saying that an allegation of theft has been made by My daughters paternal family! I have not been given any details but they are basically accusing me of stealing the money from them for the fundraising.
I am autistic and have been freaking out ever since. I know I have not done anything deliberately wrong and I don’t see how anyone could think that so I assume it must be a malicious allegation as they are aggrieved that my daughter has cut contact.
The grandmother came with me to the world challenge meeting. They all knew that my daughter had to pull out due to health reasons and that she was very upset about it. I had discussed in detail the possibility of financial loss with My daughters grandmother who knew She may not be well enough to partake in the trip. I am already down several hundred pounds financially from this. How can somebody give a gift to a child, family, and then accuse of theft?
It doesn’t make any sense to me.
Please help if you can or have any advice. I am really struggling here.
Thanks
Xx

Oh ok sorry

YABVU. Everyone should be reimbursed fully and the 10% is a hit you/your daughter take. Also it doesn’t sound great that your daughter is allowed to accept money from people that she then just cuts all ties with. Most likely the reason for cutting ties was apparent when the money was offered but wasn’t such a big deal then...

Yes the loan was from a “loan company” so the overdraft is separate I think.

In this scenario I would pay back as many people as possible and suck up the loss myself.

I would explain to the police and tell them the reason and that you are working to pay back the money when you can, which you should do.

Time for you to get a second loan for the amounts outstanding to people who gave your DD money in good faith.
As others have said, you should never have repaid yourself before others. I assume the loss isn't just the £300 (10%) and the overdraft you repaid with it but the extra costs of the loan such as fees and interest? That means your ex's family are probably out of pocket considerably. Get another loan and pay them back after speaking to the police.

I think you've handled this very badly op. You of course should have paid off others before yourself