CFTC Utilizes AI and Blockchain Tools for Market Surveillance

The U.S. Commodity Futures Trading Commission (CFTC) is employing artificial intelligence tools to analyze trading patterns and identify unusual activities, according to Foresight News. The agency is collaborating with blockchain tracking tools like Chainalysis to monitor offshore prediction markets such as Polymarket. CFTC Chairman Michael Selig stated that the commission is enforcing actions against U.S. users who bypass restrictions using VPNs and is currently investigating hundreds to thousands of insider trading leads, with a global market surveillance scope. Previously, a U.S. Army Special Forces member was arrested for using confidential information to place bets on Polymarket, marking the first criminal case of insider trading in prediction markets in the United States. Selig also mentioned that cases outside the CFTC's jurisdiction or those involving foreign affairs are referred to foreign regulatory bodies for further action.