Car Dealer Forced To Buy Back Contract From Bank And Now They Threatened To Sue Me For Balance - Florida

I bought a car and the dealer did not transfer title for 2 months and also misrepresented how many owners there were and they bounced the title to another state before it got to me. they did not have title when they sold me the vehicle. I notified the dealer I wanted to refund the contract due to this and just get my down payment back and I would return the car. They refused and lied to me.
I reported the fraud to the financial institution for fraudulent misrepresentation and they investigated and found the sale to be fraudulent sale and required the dealer to buy the loan back
I got notice that the balance was paid off and my due amount was 0.
Then the dealer sent a letter threatening to sue me for balance. Can they do this? I just want to return the vehicle and get my down payment back. Location: Florida
Edit: A lot of you believe I intend to keep a free vehicle but that isn’t the case. My attorney initially sent a demand letter stating that they take the vehicle back and refund my down payment, I have barely driven this car, and they are free to repossess the vehicle as long as I get my refund back. Their contract was terminated because of their fault, that is on them! No one here is a driving or expecting to drive a free car…
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