Connecticut Attorney General Warns of Crypto Risks After Resident Loses $200,000

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On September 3, 2026, Connecticut Attorney General William Tong issued a crypto scam alert after a resident lost $200,000 to an unregulated DeFi platform. The alert names seven offshore protocols—GMX, Gains Network, dYdX, Aevo, Drift Protocol, Vertex Protocol, and Hyperliquid. Officials warned of risks including 250x leverage, liquidations, and smart contract vulnerabilities. The alert also references synthetic perpetuals linked to Apple, Tesla, NVIDIA, and SpaceX. Residents are urged to verify platform registration and report any suspected fraud. A protocol update is recommended to improve risk management.

Odaily Planet Daily reports: On September 3, Connecticut Attorney General William Tong and State Banking Commissioner Jorge Perez issued a consumer alert stating that a resident deposited $200,000 into an unregulated DeFi crypto trading platform after falling victim to a suspected scam and is now unable to recover the funds.

The warning lists seven offshore DeFi platforms—GMX, Gains Network, dYdX, Aevo, Drift Protocol, Vertex Protocol, and Hyperliquid—but does not state that any residents used any of them.

Connecticut officials noted that some platforms offer leverage of 50x, 100x, and up to 250x; the associated perpetual contracts also involve risks such as liquidation, funding rates, smart contract vulnerabilities, and oracle risks.

The warning also covers perpetual contracts related to Apple, Tesla, NVIDIA, and SpaceX, stating that these correspond to synthetic prices rather than actual stocks. Officials advised residents to verify the registration status of cryptocurrency services, retain records of transactions and communications, and promptly report suspected fraud. (Bitcoin.com News)

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