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The US CFTC cautioned crypto investors against using AI trading bots and urged consumers not to rely on the technology as many may result in a loss.
The US Commodity Futures Trading Commission (CFTC) issued a warning to the public about the significant danger of using AI trading bots. The watchdog said consumers should be careful of scammers promising high returns using AI.
Spoiler Alert: AI Cannot Predict the Market or the Future
The CFTC has warned investors looking to win the crypto lottery against relying on artificial intelligence (AI) trading bots to deliver this prize. In a recent press release, the CFTC issued a consumer warning alert about scammers promising massive returns using AI. With the rising popularity of AI, the CFTC said consumers need to be vigilant about AI-driven scams that promise incredible yields using crypto arbitrage algorithms.
The agency said:
“With the growth of the use of AI in everyday life, scammers are making claims that it can generate huge returns using bots, trade signal algorithms, crypto-asset arbitrage algorithms, and other AI-assisted technology.”
“Don’t believe the scammers. AI technology can't predict the future or sudden market changes.”
The CFTC highlighted the prevalence of social media platforms and so-called “influencers, " making it easy for scammers to spread false information.
Melanie Devoe, director of the CFTC’s Office of Customer Education and Outreach, said:
“Be wary of the hype. Unfortunately, AI has become another avenue for bad actors to defraud unsuspecting investors.”
CFTC Cracks Down on Scammers
With the rise in AI and the ongoing surge of scamming in the industry, the CFTC aims to protect investors as well as it can. The commission recently announced it paid a total of $16 million to whistleblowers who played a crucial role in uncovering fraudulent activities.
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