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CFTC Chairman Announces Enforcement Push Against U.S. Users Accessing Offshore Prediction Markets via VPNs
Michael Selig told WIRED the agency is staffing up, deploying AI tools and pursuing hundreds of insider trading tips as it surveils global prediction markets including Polymarket. The CFTC is examining suspicious trades tied to geopolitical events and will apply extraterritorial jurisdiction in extreme cases under the 2010 Dodd-Frank Act.
May 15, 5:30 AM·2m read1 source
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CFTC chairman Michael Selig sat down with WIRED at the agency’s headquarters in Patriots Plaza II, Washington, DC, to outline an aggressive push against illicit trading on offshore prediction markets. The CFTC, which oversees prediction markets, is searching for suspicious behavior from traders within the United States who have been accessing offshore markets including Polymarket by using VPNs.
“We're going to find them, and we're going to bring actions,” Michael Selig told WIRED.
The agency is staffing up even as it leans into automation and AI tools that analyze trading patterns and flag potential manipulation. The CFTC uses proprietary surveillance systems developed in-house along with Chainalysis for crypto platforms and Nasdaq Smarts for centralized markets. Michael Selig said: “You’ve got so much data.
When we feed it into AI, we get really great information. ” The CFTC declined to specify which AI tools it uses beyond the named systems and declined to share more specific examples. Prediction platforms themselves have moved to strengthen controls.
Kalshi has suspended and penalized customers flagged for insider trading and market manipulation. In April, Polymarket announced a partnership with Chainalysis. Polymarket updated its market integrity rules in spring 2026 and announced a partnership with Palantir for its US-based sports markets.
Chainalysis analyzes the same data for both Polymarket and the CFTC. ” The CFTC’s assurances come amid heightened congressional scrutiny. In March, Connecticut senator Chris Murphy told WIRED that he suspected White House staffers were engaged in insider trading on war-related contracts.
