Prof. John M. Griffin: Forensic Finance and the Power of Research | Rational Reminder 312

Meet with PWL Capital: calendly.com/d/cpws-jyp-znp
Discover the hidden underbelly of financial markets in today’s episode featuring Professor John M. Griffin, a leading forensic finance expert and the James A. Elkins Centennial Chair in Finance at McCombs School of Business at the University of Texas at Austin. Tuning in, you'll learn how forensic finance exposes illicit activities in crypto markets, revealing how entities like Tether (a cryptocurrency pegged to the US dollar) facilitate scams and money laundering. We also delve into the disturbing world of pig butchering scams, which have stolen more than $75 billion from victims globally, and how the victims of these scams have helped John study the flow of illicit funds in crypto markets. Find out how John uncovered massive fraud in the Paycheck Protection Program during the COVID-19 pandemic, and how this exposed the central role of fintech lenders and social networks in spreading fraud. We also discuss the importance of rigorous academic research and its practical implications in uncovering financial fraud, emphasizing the need for robust oversight and transparency in both emerging and traditional financial systems. Tune in for a thought-provoking discussion that challenges established practices and calls for greater scrutiny in financial systems!
Timestamps:
0:00:00 Intro
0:06:37 John defines Forensic Finance
0:09:27 How forensic finance helps balance out hype in areas like crypto
0:11:21 John defines a pig butchering scam
0:15:47 How scam proceeds typically enter and exit the cryptocurrency network
0:21:49 The role “legitimate” crypto exchanges play in criminal activity
0:25:27 The magnitude of the criminal activity John is measuring ($75 Billion)
0:33:21 How the crypto community responded to John's paper
0:36:53 John defines Tether
0:41:44 How decentralized the crypto space is (or isn't)
0:48:04 If John tested whether tether is backed by other financial assets
0:56:33 How prevalent fraud was in the COVID-19 Paycheck Protection Program in the US
0:58:55 The role FinTech lenders played in the propagation of PPP fraud
1:03:39 The effect PPP fraud had on real estate prices
1:08:46 The implications of John's findings with regards to how financial relief efforts should be executed
1:13:14 John defines success in his life
Links From Today’s Episode:
Rational Reminder on iTunes - itunes.apple.com/ca/podcast/t...
podcast/id1426530582.
Rational Reminder Website - rationalreminder.ca/
Rational Reminder on Instagram - / rationalreminder
Rational Reminder on X - x.com/RationalRemind
Rational Reminder on RUclips - / channel
Rational Reminder Email - [e-mail]
Benjamin Felix - www.pwlcapital.com/author/ben...
Benjamin on X - x.com/benjaminwfelix
Benjamin on LinkedIn - / benjaminwfelix
Cameron Passmore - www.pwlcapital.com/profile/ca...
Cameron on X - x.com/CameronPassmore
Cameron on LinkedIn - / cameronpassmore
Prof. John M. Griffin - www.mccombs.utexas.edu/facult...
john-griffin/
Episode 260: Prof. James Choi: Practical Finance - rationalreminder.ca/podcast/260
Papers From Today’s Episode:
‘Is Bitcoin Really Un-Tethered?’ - papers.ssrn.com/sol3/papers.cfm?
abstract_id=3195066
‘How Do Crypto Flows Finance Slavery? The Economics of Pig Butchering’ -
papers.ssrn.com/sol3/papers.cfm?abstract_id=4742235

[@thomas6502]

Wow, great discussion. Y'all serve a higher purpose and we appreciate you! Thank you.

[@DevilsClaw]

Great video! You’re both truly very good interviewers. You formulate very insightful and interesting questions. I’ve recently been trying to learn as much as possible about crypto assets and your videos on the subject have been really helpful.

[@krishvenkataraman924]

Thanks for an excellent conversation! This is a must watch for anyone investing/planning to invest in Crypto. Please continue to provide such insightful content. Best wishes to PWL Capital!

[@viennois0123]

I really like the way you see your texaness as a driver for good. I am of the mountains of central Europe. Austria. Salzburg. And I feel the same.
We here also like to keep our own heads. ... and of course we're hardened by the land

[@slyanover]

Fantastic episode.

[@wandaespana2577]

Great episode

[@Jpsantos94]

Hey guys! As a 30 year old US investor, is buying 100% VT - vanguards total world stock market ETF good? That’s my entire portfolio right now with the plan to add bonds via BND later on. Thanks!

[@dyckstefan]

Depends on your needs, interests, risk aversion, etc :) Large coverage etfs are interesting but they don't replace searching to understand the market and your own situation, at least from what I understand.

[@webentwicklungmitrobinspan6935]

dunno.. hearing that you could get money for free with very very little risk sounds like a good gamble to me.
law should be enforced here more strongly.
who wouldnt take free money if they had nothing to fear?

[@viennois0123]

I left an investment company in January. My role was trading bitcoin with algorithms. Started in 2013. It feels like leaving a religious community. How could I not see the truth for so long? Now I am the crazy one.