The US Commodity Futures Trading Commission (CFTC) is using AI and blockchain tracing tools to identify insider trading on prediction markets like Polymarket, including by Americans who use VPNs to access the offshore platform illegally. The agency is pursuing "hundreds, if not thousands" of tips and claims authority to act extraterritorially against foreign platforms when their activities impact US markets. So far, one US Army soldier has been charged in connection with suspicious trades on Polymarket, but the CFTC has signalled this is just the beginning of a broader enforcement push.
