CFTC to Use AI to Catch Insider Trading on Offshore Prediction Markets

The Commodity Futures Trading Commission (CFTC) is deploying artificial intelligence tools to detect insider trading and manipulation on offshore prediction markets like Polymarket, which are blocked in the US but accessible via VPN. CFTC Chairman Michael Selig stated from Washington, DC, that the agency will pursue US-based traders using VPNs to bypass restrictions. The CFTC, currently understaffed, is hiring and using AI to analyze trading patterns and flag suspicious activity. This follows a surge in fraud on Polymarket, where traders profited from timely bets on events such as the Venezuela raid and the Iran War. The CFTC's move signals increased enforcement against unregulated crypto-based platforms.