Even assuming everything he's saying is true, he either talked with grossly unqualified lawyers, or he didn't actually listen to them.
Because as
+ThantiK points out, any lawyer who actually does civil litigation would very likely take this case on contingency given the good sized amounts involved, the significant body of evidence to work with, and the relatively cheap nature of the litigation since it wouldn't require expert testimony.
The man has been a fool from day one. Who doesn't set up a company, complete with bank accounts, before embarking on a crowdfunding venture? A fool.
Who doesn't immediately seek legal recourse (ie sue) when a known embezzler defaults on an agreement to repay the amounts he stole? A fool.
Who even goes so far as to finally report the embezzlement to the police, then sits back without bothering to do anything about a corresponding civil suit to actually collect on the debt? A damn fool.
Maybe the whole story is true. Who knows. But if it's true, it's pretty damning for Rylan, and if it's not true it's also pretty damning for him.
He has screwed up, repeatedly, and done so to a degree that boggles the mind. And now he wants to pass the buck.
He could be the nicest guy on earth and he would still deserve an incredible stream of abuse and invective for being so incredibly stupid.