Connecticut Warns of Offshore DeFi Risks After $200K Loss
Connecticut officials have issued a public warning about the dangers of using unregulated overseas decentralized finance platforms after one state resident lost $200,000.
The warning was released by Attorney General William Tong and Banking Commissioner Jorge Perez on September 3, 2026. The notice described how a person with a personal connection convinced the resident to transfer the funds to an unnamed unregulated DeFi exchange, which remain inaccessible.
The alert listed several offshore services as examples of platforms that operate beyond U.S. state and federal rules, including GMX, Gains Network, dYdX, Aevo, Drift Protocol, Vertex Protocol, and Hyperliquid. However, officials did not claim the resident used any of these specific services.
Officials emphasized that such venues sit outside consumer safeguards that apply to licensed banks and registered exchanges, leaving users with limited options if fraud occurs or a platform fails.