The United States Commodity Futures Trading Commission (CFTC) announced a prize contest for new instruments to search for unregistered offers of derivatives, including bitcoin futures, for American investors from foreign companies.
LabCFTC launches Project Streetlamp, the @CFTC’s first science prize competition, today. The competition is looking for innovative ways to use AI and other technologies to add unregistered foreign entities to the CFTC’s RED List. Learn more at //t.co/OWYDybu6S7.
— CFTC (@CFTC) April 21, 2020
The regulator noted that it constantly monitors malicious investment offers in order to protect consumers. Recently, scammers are increasingly using new technologies to attract victims, including methods of social engineering, false profiling, and manipulation.
In response, the fintech division of the commission, LabCFTC, announced the launch of Project Streetlamp – first science prize competition. The Commission expects innovative proposals from applicants to apply new technologies, including AI, to find foreign organizations that have not properly registered its offerings for investors.
Solutions should track the “footprints” of potentially fraudulent market players, for example, by keywords, website data, audience information, network, and so on.
Contestants must submit a tool that will allow CFTC to include fraudsters on the RED List according to certain criteria. Investors will be able to independently decide whether to deal with companies from this list.
The regulator also noted that the registration of a firm’s offer does not guarantee its good faith.