Warrant Traces Alleged Check Fraud Through Cryptocurrency

EAST GRANBY, CT — Money from two checks stolen from a Wallingford business was allegedly moved through bank accounts, cryptocurrency purchases and an online banking account before some of it returned to a person identified as “Christopher C.,” according to an arrest warrant.

Christopher Collins, 23, of East Granby, was arrested Sept. 24 after Wallingford police investigated the theft of two business checks worth a combined $34,379.50.

As Patch previously reported, police said Collins contacted a juvenile and offered to pay the juvenile $5,000 to deposit the checks at different banks.

New details from the arrest warrant, first reported by CT Insider, describe how investigators followed the money after one of the checks was deposited.

The case began after a Wallingford business owner reported two checks missing from the mail. One check was worth $12,604.50 and the other was for $21,775, according to police.

The warrant says the $12,604.50 check was deposited March 17 at a Wells Fargo ATM in Ansonia. Investigators obtained bank records and surveillance video that identified Collins as the account holder, according to CT Insider’s report.

When police questioned Collins on April 4, he said he knew nothing about the check, the warrant says.

Investigators found an attempted $5,000 wire transfer from the Wells Fargo account to the juvenile, according to the warrant. The bank rejected the transfer and returned the money.

The account was then drained through “multiple withdrawal methods,” including MoonPay payments, ATM withdrawals and Zelle transfers, leaving a balance of $2.49, the warrant says.

Police said $9,340 was transferred from a Wells Fargo card to MoonPay, a service that allows users to buy and sell cryptocurrency. Investigators counted 21 transactions involving MoonPay between March 17 and March 21, according to the warrant.

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Police obtained records from MoonPay and determined that money from the Wells Fargo account was used to purchase Bitcoin or other cryptocurrency, according to CT Insider.

The warrant says some of the cryptocurrency was later sold for $7,456.35. The money was then sent to a Chime account held in the name of a relative of the juvenile.

That relative told police the account was used for Amazon purchases and said they did not know about the deposits, according to the warrant. Investigators said the account’s address had been changed to East Granby.

Bank records showed money from the cryptocurrency sale was later transferred from the Chime account to a person listed as “Christopher C.,” the warrant says.

Wallingford police previously said investigators “tracked the movement of money through various accounts and financial technology companies,” leading to the arrests of Collins and the juvenile.

Collins is charged with third-degree money laundering, conspiracy to commit third-degree money laundering, second-degree larceny, conspiracy to commit second-degree larceny, conspiracy to commit third-degree forgery and conspiracy to commit fraudulent use of an ATM.

He was released after posting a $45,000 bond. During an Oct. 7 appearance in Meriden Superior Court, Collins was assigned a public defender and ordered to return Nov. 17 to enter a plea, CT Insider reported.

The juvenile was arrested Aug. 21 on money-laundering, larceny, forgery and fraudulent-use-of-an-ATM charges. The juvenile’s identity has not been released.

The charges are allegations, and neither defendant has been convicted in the case.

For more Northern Connecticut news, follow Patch editor Jay Kenney.