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The US is betting on AI to catch insider trading in prediction markets

The Commodity Futures Trading Commission is using AI and blockchain tools to crack down on insider trading in offshore prediction markets like Polymarket. Chairman Michael Selig says the agency is staffing up and automating analysis to handle the workload. Despite jurisdictional challenges, the CFTC has pursued hundreds of leads and made one arrest. The agency vows to continue its global surveillance.

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The US is betting on AI to catch insider trading in prediction markets
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Key points

  • CFTC uses AI and blockchain analytics to monitor prediction markets for suspicious trading.
  • Agency targets traders using VPNs to access offshore platforms like Polymarket.
  • Hundreds of insider trading tips received; one soldier arrested for bet on Venezuelan leader.
  • CFTC emphasizes extraterritorial jurisdiction but evaluates cases individually.

Highlights and analysis are generated automatically and may contain errors. Check the original source.