The US Commodities and Futures Trading Commission (CFTC) has cautioned potential cryptocurrency investors against placing faith and finances in AI trading bots, as many could lead to a complete loss.

The warning comes amid a surge of interest in these AI trading bots from investors looking for significant cryptocurrency gains.

Despite this popularity, the CFTC emphasises that AI tools cannot accurately predict future market trends.

With its recent 'Customer Advisory Cautions the Public to Beware of Artificial Intelligence Scams', the CFTC advises cryptocurrency investors seeking substantial returns to avoid falling prey to overblown claims related to AI.

In particular, the agency warns against bots, trade signal algorithms, and cryptocurrency asset arbitrage algorithms that boast hefty yields thanks to AI technology.