i'll be honest, with your daughter being resentful toward authority, the whole JW thing was probably unhelpful, but i'd be more inclined to blame it on a whole host of other things.
Firstly, whether she was given up for adoption or had been taken away by social services, its possible her biological parents were unsavoury characters too, her mother may have drank heavily and taken drugs during pregnancy which can do a lot of damage, resulting in behavioural problems and mental illness at best.
Secondly, despite your best efforts you were probably fighting a losing battle in your case at least. Some adopted children can be resentful toward any display of love or affection and taking into account my first point you have a lethal cocktail.
Thirdly, once you become involved with drug dealers and the like you become trapped in a nasty space. One that doesn't easily let go, if you don't wish to try anyway then chances are your only going to spiral deeper.
You and your Wife are not to blame, but from your post that will provide little comfort when your concerned about the safety of your family. I wish you all the best.