CFTC Chairman reveals that AI technology has been deployed to monitor insider trading in prediction markets like Polymarket

According to WIRED, Michael Selig, chairman of the Commodity Futures Trading Commission (CFTC), stated that the agency is using artificial intelligence technology to investigate insider trading in prediction markets such as Polymarket.

In the past year, several traders on Polymarket have been suspected of using insider information to bet on geopolitical events such as the Venezuela raid and the Iran war, resulting in significant profits and drawing widespread attention.

Previously, a U.S. Special Forces soldier was arrested for allegedly profiting from betting on the Maduro arrest using classified intelligence on Polymarket, becoming the first criminal case of insider trading in a prediction market in the United States.