The CFTC has warned investors about AI algorithms offering unrealistic crypto investment returns.

Investors are urged to conduct extensive research on entities promoting AI trading algorithms.

A Request for Comment has been initiated by the CFTC to understand AI's role in derivatives markets, with a deadline for feedback set for April 24, 2024.

The advisory highlights past incidents where AI-driven crypto bots have been implicated in Ponzi schemes and reckless financial maneuvers.

Major cryptocurrency exchanges, such as Bitget, continue to investigate the integration of AI bots despite these risks.

The CFTC cautions against trusting overhyped claims and misinformation, particularly from social media and influencers.