"She's a paladin. She's not allowed to lie."

"He might just think he's hidden it well enough she won't find it." But she stands aside for Seelah.

And is Curl hiding the purse?

No!

Blai will look under, like, the nearby chairs and stuff, while she's doing that.

Looks like this completely different person is attempting to surreptitiously return it to her.

Sigh. Blai grabs said person by the arm and takes the purse with the other.

"—Hey!"

 One of the crusaders from the Eagle Watch has made it over to the argument. "What's the matter over here?"

"Some shenanigan with a stolen purse. Ma'am, can you see if anything's missing from it?"

She counts the money, eyeing Curl suspiciously. "There doesn't seem to be."

"Do you have an explanation?" he asks the person he apprehended.

"I, er, I saw that it had fallen, so I picked it up, and I was just about to give it back to her..." He trails off.

"And you were doing this so discreetly instead of pointing it out without touching it, or announcing that you'd found it...?"

"I... didn't want anyone to think I'd taken it."

"This approach was not effective."

"...I'm... sorry?"

He releases the arm, though. "Fortunately, it sounds like nothing is missing."

He chuckles nervously.

If the owner of the purse is satisfied he will withdraw from the situation in spite of it remaining kinda sus.

...Curl is going to follow him and Seelah rather than continue to hang out next to the woman who was accusing him.

Understandable.