The CFTC discussed the use of AI to detect insider trading - ForkLog: cryptocurrencies, AI, singularity, the future

трейдинг с применением искусственного интеллекта AI trading# The CFTC Discusses the Use of AI for Detecting Insider Trading

The U.S. Commodity Futures Trading Commission (CFTC) is using artificial intelligence to monitor insider trading. Chairman Michael Selig announced this in an interview with Wired.

According to him, the agency tracks suspicious behavior of American traders who “penetrate offshore markets like the prediction platform Polymarket using VPNs.”

The CFTC is actively implementing AI automation to ease its growing workload. The tools independently analyze trading patterns and identify potential manipulations.

“We have so much data. When we pass it to AI, we get truly valuable insights. This can help us understand certain things, such as where a detailed investigation might be needed or when to send a subpoena to a trader,” Selig noted.

In addition to deploying its own surveillance systems, the regulator collaborates with third-party projects, including Chainalysis and Nasdaq Smarts software.

Moreover, the Commission’s investigations are not limited to federal exchanges. Selig clarified that the agency will apply extraterritorial jurisdiction when detecting suspicious activity on offshore platforms like Polymarket.

“We monitor markets on a global scale,” emphasized the CFTC chairman.

Currently, only one insider trading charge has been filed in the U.S. in the prediction segment. Active service member Gannon Ken Van Dijk was suspected of using confidential information to place bets on Polymarket.

According to investigators, Van Dijk participated in preparing and executing Operation “Absolute Resolve” to capture former Venezuelan President Nicolás Maduro. Having access to confidential data about the timing and details of the mission, the military officer used it to earn money.

Recall that in April, two Polymarket accounts were suspected of manipulation after earning $37,000 on correct bets on abnormal temperature readings at the weather station at Paris Charles de Gaulle Airport.

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