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

The CFTC has deployed AI systems to analyze trading patterns across prediction markets, flagging unusual betting activity that occurs just before major news breaks or economic data is released. CFTC Chairman Michael Selig disclosed the agency's use of machine learning algorithms to detect insider trading on platforms like Polymarket. Machine learning systems can process real-time data and identify suspicious trading patterns in seconds that would take human investigators months to detect manually.

Source: Ars Technica | 2026-05-16