Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
Crypto Flexs
  • DIRECTORY
  • CRYPTO
    • ETHEREUM
    • BITCOIN
    • ALTCOIN
  • BLOCKCHAIN
  • EXCHANGE
  • ADOPTION
  • TRADING
  • HACKING
  • SLOT
Crypto Flexs
Home»TRADING NEWS»Regulators seek public input on AI fraud, market impact
TRADING NEWS

Regulators seek public input on AI fraud, market impact

By Crypto FlexsJanuary 29, 20242 Mins Read
Facebook Twitter Pinterest LinkedIn Tumblr Email
Regulators seek public input on AI fraud, market impact
Share
Facebook Twitter LinkedIn Pinterest Email

Regulators are harnessing the power of artificial intelligence (AI) to spot scammers promoting cryptocurrency trading systems with false claims of high or guaranteed returns.

As the trend toward using automated software for trading increases, the Commodity Futures Trading Commission (CFTC) has issued a consumer advisory highlighting the inability of these AI systems to clearly predict market movements.

See below.

The customer advisory, titled “AI Doesn’t Turn Trading Bots Into Money Machines,” exposes the fraudulent tactics used to lure investors, including Cornelius Johannes Steynberg, who stole more than $1.7 billion in Bitcoin (BTC) from unsuspecting victims. The story is explained in detail.

The CFTC has since advised traders to avoid tempting assurances that they will earn high profits from AI-enabled tools, warning that such exaggerated claims often do not deliver.

Melanie Devoe of the CFTC’s Customer Education and Support Division argues that traders should approach these AI promises with skepticism and recognize the potential for exploitation by unscrupulous individuals to lure the unwary.

Despite these concerns, some major exchange platforms, such as Bitget, continue to innovate with AI bots. Last July, Bitget CEO Gracy Chen shared that his company’s AI system works by processing historical strategy data for continuous improvement.

At the same time, the CFTC’s Division and Office of Technology and Innovation launched a Request for Comments (RFC) to better understand the current and potential uses of AI in derivatives markets and their risks.

By establishing a broad network for feedback, the CFTC seeks to uncover insights into the role of AI in various aspects of traditional and cryptocurrency trading, from trading risk management to improved market surveillance methods as well as implications for cybersecurity, analytics and security. do. Customer service field.

CFTC Chairman Rostin Behnam emphasized that consumer protection remains paramount as the market evolves by balancing regulatory oversight with technological advancements.

Behnam credited the RFC as pivotal to the Commission’s strategic focus on fostering a data-driven approach to regulatory intervention and oversight.

The agency also highlighted the potential benefits of AI in regulatory compliance, particularly market surveillance, anti-money laundering (AML) strategies and reporting.

Investors and market participants are encouraged to provide their insights by April 24, 2024, as the CFTC considers new regulations or guidance that could shape the future of AI in mainstream and cryptocurrency trading.

Follow us on Google News

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

What should I expect from Ether Reeum price in June 2025?

June 1, 2025

Licensed platform Cryptogames shows how promotions increase player winning potential.

May 31, 2025

Dow inch high, S & P 500 caps in May since 1990

May 30, 2025
Add A Comment

Comments are closed.

Recent Posts

Destino Devconnect-Local subsidy round that brings Argentina Onchain

June 1, 2025

SUI PASSESS votes for CETUS $ 162 million

June 1, 2025

Github University 2025 emphasizes AI -based development and community buildings

June 1, 2025

Upgrade to improve the BTFS V4.0 upgrade network and improve the BTTC ecosystem

June 1, 2025

Ether Leeum price is faced with light correction -focus of support level

June 1, 2025

Cronos

June 1, 2025

Elevenlabs integrates Anthropic’s Claude Sonnet 4 for Advanced AI Voice Agent.

June 1, 2025

As the whale exit is strengthened, the $ 0.32 mantra: Om is at the turning point?

June 1, 2025

What should I expect from Ether Reeum price in June 2025?

June 1, 2025

Elevenlabs improves multi -mode conversation AI user interaction

June 1, 2025

SEC back track for Rex-OSPREY Staked ETF

June 1, 2025

Crypto Flexs is a Professional Cryptocurrency News Platform. Here we will provide you only interesting content, which you will like very much. We’re dedicated to providing you the best of Cryptocurrency. We hope you enjoy our Cryptocurrency News as much as we enjoy offering them to you.

Contact Us : Partner(@)Cryptoflexs.com

Top Insights

Destino Devconnect-Local subsidy round that brings Argentina Onchain

June 1, 2025

SUI PASSESS votes for CETUS $ 162 million

June 1, 2025

Github University 2025 emphasizes AI -based development and community buildings

June 1, 2025
Most Popular

CUDOS Joins ASI Alliance to Promote Decentralized AI Development

September 21, 2024

Did Lunc secretly listed on Binance? Here’s what’s going on

April 19, 2025

Trader predicts Dogecoin Breakout Rally and warns Bulls as ‘hyper liquid’ by Layer-1 altcoin.

February 19, 2025
  • Home
  • About Us
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • Terms and Conditions
© 2025 Crypto Flexs

Type above and press Enter to search. Press Esc to cancel.