ME News reports that on September 3, Connecticut Attorney General William Tong and State Banking Commissioner Jorge Perez issued a consumer alert: a resident deposited $200,000 into an unregulated DeFi crypto trading platform after falling victim to a suspected scam and has been unable to recover the funds. The alert lists seven offshore DeFi platforms—GMX, Gains Network, dYdX, Aevo, Drift Protocol, Vertex Protocol, and Hyperliquid—but does not state that the affected resident used any of them. Connecticut officials noted that some platforms offer leverage of 50x, 100x, and up to 250x; related perpetual contracts involve risks such as liquidation, funding rates, smart contract vulnerabilities, and oracle failures. The alert also mentions perpetual contracts tied to Apple, Tesla, NVIDIA, and SpaceX, clarifying that these reflect synthetic prices rather than actual shares. Officials advise residents to verify the registration status of crypto services, retain records of transactions and communications, and promptly report suspected fraud. (Source: ODAILY)
Connecticut Warns of Risks from Offshore DeFi Platforms Including Hyperliquid and GMX
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Summary
On September 3, Connecticut officials issued a consumer alert warning of DeFi exploitation risks associated with unregulated offshore platforms such as Hyperliquid and GMX. The alert underscores dangers posed by high leverage, smart contracts, and oracles. Platforms offering leverage of up to 250x include dYdX, Aevo, and Vertex Protocol. Residents are urged to verify platform registrations and report any suspected fraud. According to the notice, recent protocol updates on some platforms have not enhanced oversight.
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