W4 link does say, in its title, that the money raised was for “Godot Engine Growth”.
From reading through the forum thread replies (I’m not familiar), it sounds like W4 is a separate legal entity than the Godot foundation, and the $8.5M in question is from commercial investors.
If true, then it would literally be fraud to use that $8.5M for other than it’s intended purpose, which unfortunately seems to mean something different than actually working on the Godot engine itself.