After looking into this, and going back over all of the threads related to it at the time, it's very clear that /u/-Lobali misused her position as a trusted person in this community and as head mod to gain control of the funds raised by good folks who thought they would then be spent on books, commissary money and magazine subscriptions for their fallen comrade.
Lobali promised more than several times in the very early stages that she would be fully transparent every step of the way and would post scans of Western Union transfers she had made to Pete Nash's prison commissary account, etc. etc.
She used her mod powers and stickied the book-drive thread at the top of the sub for two weeks and claimed at one stage that she:
"isn't above (below?) begging"
Unfortunately and VERY sadly, Lobali spent far more time on raising the money than she actually did spending it because it's a fact that not one cent was transferred to Pete's commissary account and he got just five books in one sole transaction.
She claims this is because she was ill but nevertheless one thousand dollars never made it to its intended recipient.
If Lobali is as ill and broke as she represents herself to be or as incompetent with bitcoin as she claims then she should never have touched any of this with a ten-foot bargepole and nor should she remain a mod now her honesty has been called into question.
Bruce's motives were good, he just wanted to get some money for books for his old pal to read in prison. He didn't want to handle the funds himself - because he likely didn't want anything that could identify him in real life and cause him to end up sitting alongside SSBD.
Lobali offered to be in charge of funds raised and Bruce accepted because she's a mod. There's proof of this exchange and I have it screenshotted and saved for posterity if anyone is in doubt that she stepped forward rather than it being a case of Bruce blindfolding himself and pinning a tail on a donkey.
That said, I don't like the way this has come out, but as any PR professional will tell you sometimes bad stories often leak at the worst times.
I don't think the rest of the current mod team are to blame for any of this in any way shape or form but when you're fighting a fire the way in which you fight it speaks volumes about you.
If the true measure of a man is the way in which he handles his mistakes then the current mod team NEED to push Lobali to resign.
Immediately.
Don't forget the other, final, key character in this drama (OzFreelancer) and her profession.