CFTC Chairman Announces Enforcement Push Against U.S. Users Accessing Offshore Prediction Markets via VPNs

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.

At the beginning of April, seven members of Congress asked the CFTC to investigate overseas markets offering war-themed events contracts. Michael Selig recently told Congress that the CFTC is pursuing “hundreds, if not thousands” of insider trading tips. ” The CFTC will exert extraterritorial jurisdiction on offshore platforms like Polymarket on a case-by-case basis.

The 2010 Dodd-Frank Act gives the CFTC more authority over foreign swap activities that impact the US. The CFTC works with regulators from other countries and constantly refers cases to foreign regulators. On April 23, federal agents arrested a US Army special forces soldier for trades made on Polymarket last year tied to the capture of former Venezuelan leader Nicolas Maduro.

After the April 23 arrest, Polymarket claimed that it had flagged the trade to the government. ” Wired reported these developments from the interview at Patriots Plaza II and supporting statements to Congress.