AG Tong issued a comprehensive consumer alert warning Connecticut residents about the significant financial and security risks associated with unregulated, offshore “decentralized finance” (DeFi) cryptocurrency exchanges. Operating outside of state and federal regulatory frameworks, these platforms bypass critical consumer protections and expose retail investors to substantial financial losses, predatory leverage, and serious security risks.  

“These platforms are built to lure investors in with promises of easy access and bigger returns. What they don’t advertise is that if something goes wrong, investors will be stranded with little to no recourse, while the platforms walk away with the profits. This isn’t innovation, it’s exploitation. Do research before handing over any money and know what protections are in place if things go wrong.” – AG Tong