"There is nothing we can do to salvage this case," she said.
Yet the state's top state prosecutor acknowledged that the tapes made during the course of the investigation had captured criminal activity.
"I believe that we have evidence that certain legislators were taking money, and that's a crime," Kane told reporters at a late-morning news conference in Harrisburg.
She said that eight people in all were captured on tape, but she did not say who they were.
Kane, a Democrat, has maintained that the undercover investigation was poorly managed and badly executed, and relied on an undercover operative whose credibility had been compromised.
Prosecutors in the Attorney General's Office who launched the case in 2010 have countered that the sting operation was solid, and say Kane shut it down for political reasons.
They also say that she faced a conflict in the case, as two people who supported her 2012 campaign for attorney general had previous dealings with the sting operation's undercover agent, a little-known Philadelphia lobbyist named Tyron B. Ali.
Given the dispute, the nonpartisan Committee of Seventy in Philadelphia on Monday urged the legislature to allow for the creation of an independent counsel to conduct "a fair and nonpartisan" investigation into why the sting case was closed.
"This is a highly unusual matter where traditional investigative authorities who might review the integrity of the sting operation and its dismissal - both of which are under attack - are compromised," Zack Stalberg, the committee president, said in a statement.
Kane vigorously defended her office's record of pursuing public corruption cases.
"It is loud and clear," she said. "We made no decisions based on political parties."