...As we are refunding your payment, I am assuming the dispute is no longer in process...
I wouldn't cancel the dispute unless the refund actually occurs.
I'd bet a pretty good sum that you won't get a refund from the scam company, and if you continue your dispute with the credit card company the scammers will provide proof to the credit card company that it was a legitimate transaction. Not sure they accept "I didn't read the fine print" as an excuse. But I certainly hope so in this case.