Meet with PWL Capital: https://pages.pwlcapital.com/en-ca/contact-us?utm_source=content&utm_medium=youtube&utm_campaign=rationalreminder_yt 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 — https://itunes.apple.com/ca/podcast/the-rational-reminder- podcast/id1426530582. Rational Reminder Website — https://rationalreminder.ca/ Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/ Rational Reminder on X — https://x.com/RationalRemind Rational Reminder on YouTube — https://www.youtube.com/channel/ Rational Reminder Email — info@rationalreminder.ca Benjamin Felix — https://www.pwlcapital.com/author/benjamin-felix/ Benjamin on X — https://x.com/benjaminwfelix Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/ Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/ Cameron on X — https://x.com/CameronPassmore Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/ Prof. John M. Griffin — https://www.mccombs.utexas.edu/faculty-and-research/faculty-directory/ john-griffin/ Episode 260: Prof. James Choi: Practical Finance — https://rationalreminder.ca/podcast/260 Papers From Today’s Episode: ‘Is Bitcoin Really Un-Tethered?’ — https://papers.ssrn.com/sol3/papers.cfm? abstract_id=3195066 ‘How Do Crypto Flows Finance Slavery? The Economics of Pig Butchering’ — https:// papers.ssrn.com/sol3/papers.cfm?abstract_id=4742235