The CFTC chairman Michael Selig said the agency will pursue actions against insider trading on Polymarket. Polymarket is blocked in the US for wagers tied to war, terrorism, and assassinations, but US users access it via VPNs and use crypto, which can obscure identities and complicate enforcement. Selig said the agency has large datasets and can use AI to generate information that helps determine where to investigate and when to issue subpoenas. His remarks come as the Trump administration has moved toward allowing Polymarket to operate with legal status in the US, including dropping prior investigations and enabling a US entity. Polymarket has faced repeated insider trading allegations, including a high-profile bet before a Venezuelan invasion.
"“We're going to find them, and we're going to bring actions,” Selig in an interview this week."
"“You've got so much data,” Selig told Wired. “When we feed it into AI, we get really great information. It can help us understand things, like where we might want to investigate, or when we might need to send a subpoena to a trader.”"
"Polymarket's website is blocked in the US because trading laws prohibit wagers related to war, terrorism, and assassinations. Tons of US traders use a VPN to access it, though, and can further anonymize their transactions by using the platform's currency of choice, crypto. That can make sussing out who's behind suspicious bets on there a tall order, but Selig says AI tools are helping the small agency bring the bad actors to light."
"A major roadblock to mainstream adoption are Polymarket's constant scandals over alleged and actual instances of insider trading on the platform. The issue gained national attention in January this year when one trader made over $400,000 with a suspiciously timed bet on former Venezuelan president Nicolás Maduro's ouster that was made just hours before US troops invaded the country and abducte"
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