The U.S. CFTC warns investors to be cautious of AI-generated cryptocurrency arbitrage algorithms

2024-01-28 17:42:16

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ChainCatcher news, according to News.bitcoin, the U.S. Commodity Futures Trading Commission (CFTC) has warned investors to be cautious of AI-generated software or algorithms that claim to have a "100% win rate."

It is reported that the CFTC has identified cryptocurrency trading schemes, trading signal strategies, or automated trading algorithms as some of the AI-generated software used by scammers to target investors.

Additionally, in a statement released through the CFTC's Office of Customer Education and Outreach (OCEO), the commission expressed concern over the increasing number of criminals using AI to hype up schemes to steal from users. The statement noted that scammers spread false information through social media platforms and so-called influencers, further exacerbating the issue. Unlike traditional media or advertising companies, influencers and social media platforms are not bound by conventional marketing or advertising rules. Nevertheless, the statement outlined some steps that investors should always take before committing funds.

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