Connecticut Attorney General William Tong and Banking Commissioner Jorge Perez issued a consumer alert after a resident deposited $200,000 into an unregulated DeFi crypto trading platform following a suspected scam and cannot recover the funds. The alert names seven offshore DeFi platforms — GMX, Gains Network, dYdX, Aevo, Drift Protocol, Vertex Protocol, and Hyperliquid — but does not specify which one the resident used. Officials highlighted that some platforms offer leverage up to 250x, and perpetual contracts involve risks such as liquidation, funding rates, smart contract vulnerabilities, and oracle issues. They also cautioned about synthetic stock perpetuals tied to Apple, Tesla, Nvidia, and SpaceX, which track synthetic prices rather than real stocks. Residents are urged to verify registration status, keep records, and report suspected fraud.
Connecticut Attorney General William Tong and Banking Commissioner Jorge Perez put out a joint consumer alert after a resident deposited $200,000 into an unregulated DeFi crypto trading platform following a suspected scam. The money, officials said, is now unrecoverable.
The alert names seven offshore DeFi platforms — GMX, Gains Network, dYdX, Aevo, Drift Protocol, Vertex Protocol, and Hyperliquid. But officials said they have not confirmed that the affected resident used any of them. They also said some platforms offer leverage of 50x, 100x, and as much as 250x. And the perpetual contracts tied to those platforms carry risks such as liquidation, funding rate swings, smart contract vulnerabilities, and oracle data discrepancies.
The alert also pointed to perpetual contracts linked to Apple, Tesla, Nvidia, and SpaceX. The warning was blunt: these contracts follow synthetic prices, not actual stocks, which leaves investors facing extra uncertainty. Officials told residents to check whether crypto services are registered in the state, keep records of transactions and communications, and report any suspected fraud right away.
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