Connecticut Attorney General Issues Crypto Warning, Investors Lose $200,000

Connecticut Attorney General William Tong and State Banking Commissioner Jorge Perez have issued a consumer warning after a resident lost $200,000 on an unregulated DeFi crypto trading platform, which they are unable to recover. The warning lists seven offshore DeFi platforms: GMX, Gains Network, dYdX, Aevo, Drift Protocol, Vertex Protocol, and Hyperliquid, but does not specify which platform the affected resident used. Officials noted that some platforms offer leverage of 50x, 100x, and up to 250x, with associated risks involving liquidation, funding rates, smart contracts, and oracle risks. The warning also mentioned perpetual contracts related to Apple, Tesla, Nvidia, and SpaceX, stating that these correspond to synthetic prices rather than actual stocks. Officials remind residents to verify the registration of crypto services, keep records of transactions and communications, and report suspected fraud promptly.

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