CFTC Highlights AI's Misuse in Crypto Trading, Calls for Prudent Oversight

Authorities are highlighting the risks associated with the enticing but deceptive claims of AI-driven cryptocurrency trading systems, promising high or certain profits. The rise of automated trading software has prompted the Commodity Futures Trading Commission (CFTC) to issue an advisory to consumers, emphasizing that AI cannot predict market trends with certainty.



The advisory, titled "AI Won't Turn Trading Bots into Money Machines," unveils the deceptive methods used to lure investors. It includes cases like Cornelius Johannes Steynberg's, who defrauded investors of over $1.7 billion in Bitcoin (BTC).



The CFTC warns traders against the alluring but often empty promises of substantial returns from AI-enhanced tools. Melanie Devoe from the CFTC's Office of Customer Education and Outreach advises caution towards these AI claims,


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