I was able to finally find an article explaining why the funds couldn’t be used, unlike the op article.

One major issue appears to be how the fundraiser was originally described. Critics have pointed out that early campaign messaging focused on supporting Eatherly and his family rather than explicitly stating that funds would be used for legal defence or bail.

https://poprant.indiatimes.com/trending/why-is-tennessee-da-trying-to-block-chudthebuilder-from-using-fundraiser-money-full-legal-controversy-surrounding-his-bond-fight-explained/articleshow/131136503.html