Worsley pleaded guilty to fraud when she appeared at Leeds Crown Court earlier this month - less then two months after the death of the six-year-old.
The Yorkshire Evening Post understands Worsley, 32, of Osmondthorpe, Leeds, abused her position as a trustee of the fund to spend the money on gambling.
West Yorkshire Police has confirmed that all of the money has been recovered and that Worsley's offending did NOT affect Toby's treatment.
-> Man crushed by falling shutter at Leeds greeting card factory say locals as police confirm tragic deathThe youngster's family launched an appeal to raise £200,000 to pay for therapy which was not available on the NHS.
The fundraising target was achieved with huge support from Leeds United.
Early testing after treatment showed his bone marrow was clear of cancer.
Tragically he was then diagnosed with a brain tumour and died on January 12, 2019.
-> Rugby coach punched opposing player to the ground and stamped on his head during match in LeedsThe full details of the charge were: "Stacey Worsley, between January 2, 2017, and March 30, 2018, you committed fraud in that, dishonestly and intending thereby to make a gain for yourself or another, or to cause loss to another, or to expose another to the risk of loss, abused her position as a trustee in respect of monies donated for the treatment of Toby Nye, in which she was expected to safeguard or not take against the financial interests of the said Toby Nye, by using approximately £140,700 of such monies for her own purposes, in breach of Section 4 of the Fraud Act 2006."
Prosecutor Phillip Adams said on March 4 that Worsley had pleaded guilty to the offence on the basis that she had illegally obtained a lower figure of £100,000.
The basis of plea was accepted by the Crown Prosecution Service.
-> Norman bar on Call Lane forced to close as police warn of 'retribution' over mass brawlA West Yorkshire Police spokesperson said previously: "As part of the investigation, police have secured the return of all of the money involved with a view to the majority being used to support an identical local good cause, which is yet to be decided on, and an amount being redistributed to identified key donors.
"At no point did the fraud affect the child’s medical treatment, which was funded separately."
A spokesperson for Leeds United has said: "We can confirm that all money raised by supporters, players and staff of Leeds United during our Toby Nye campaign was ring-fenced by the club and used to pay for Toby's treatment."