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https://www.cnbc.com/2024/03/28/live-updates-ftx-founder-sam-bankman- fried-sentencing.html , https://www.cbc.ca/news/business/ftx-bankman-fried- sentencing-1.7158098 Word Count: 499 In establishing of a white-collar crime and committing financial fraud, the recent sentencing that has taken place against Sam Bankman-Fried, known to be the founder of FTX, expressing his involvement within the biggest cryptocurrency fraud scheme raises questions, interconnected to the application of Robert K. Merton’s strain theory. The expression of Merton’s theory, in his work “Social Theory and Social Structure” (1968), emphasizes the goals in relation to society’s means to achieve are not always related, leading towards the engagement of individuals deviant behaviour in pursuing cultural success. Analyzing the life of Bankman-Fried through his case provides a clear demonstration of Merton’s theory offering a valuable insight in motivations that has been described in his actions and the implications that have represented the understanding against the financial fraud in society. Merton distinguishes amongst that Bankman-Fried’s rise within the industry related to crypto, founded him success in FTX positioning him as a symbol of entrepreneurial success and innovation (Smith, 2022). However, the advocacy of Merton emphasizes, beneath the success of lies a face of deceiving and malfeasance, as evidenced by the conviction and seven charges related to the conspiracy and fraud committed by Sam Bankman- Fried (CBC News, 2024). According to Merton, the experiences of individuals forced amongst the societal gaols and the means available to be achieved may be distinguishes to illegitimate limitations, such as fraud and deception, leading to disconnection (Merton 1968, Pg. 54). The disparity between the expectations of success in the market of crypto and the achievement of success lead to limitations in legitimate hope contributing to the decisions of Bankman-Fried engaging in fraudulent activities (Ryan, 17). As FTX, faced financial pressure and the collapse of pricing for crypto in 2022, Bankman diverted his customers funds, seeking to maintain his success (CNBC, 2024). In committing such actions, he violated the trust of investors, customers, and the betrayal of principles and transparency of the integrity he had built in the industry (Sztompka, 500). Bankman-Fried’s conduct underscores the role of differentiating access to the means of legitimacy in shaping deviance of behaviour, a central emphasis of Merton’s theory (Merton, 1938). Despite of the position as a CEO, Bankman-Fried had conquered various constraints in achieving the desired levels of success. The compounding of wealth and influence had contributed to the selfish desire of pursuing and committing wrongful actions for self-interest (Sztompka, 500). However, the theory of Merton emphasizes the role of societal reactions and controls that help with shaping the deviant behaviour of individuals (Merton, 1938). Sentencing of 25 years in prison and a fine of 11billion dollars to be forfeited provides the condemnation of Bankman-Fried’s actions serving as an example for future financial fraudsters (Ryan, 17). Merton emphasizes upon his theory in

understanding the motivations that have led to the white- collar crime and financial fraud. The relation between societal goals, institutional complexities, and individual behaviour, offer valuable lessons associated with Merton’s framework addressing insights for structural conditions against financial fraud and promote ethical conduct within the cryptocurrency industry. References News Articles: Sigalos, M., & Mangan, D. (2024, March 28). FTX founder Sam Bankman-Fried sentenced to 25 years for crypto fraud, to pay $11 billion in forfeiture. CNBC.

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