Last week the crypto world experienced one of its most difficult moments so far with the collapse of the FTX trading exchange which we expanded on in the various news about the crypto field (here here and here among others). One of the things that made this big fraud possible was The extreme lack of transparency in which the industry operates in general and the FTX company in particular.
John Ray, who was involved in the liquidation of Enron, which became a symbol of fraud, was appointed CEO of the bankrupt company to assist in the liquidation process, and he was amazed by what he saw. “In my entire career, I have never seen such a magnificent failure of corporate control and such a lack of reliable financial information.” , more from the new CEO: “FTX did not properly manage the books of accounts and did not keep records” Regarding the company’s previous managers Ray said they were “a small group of people without experience, without sophistication and with potential conflicts of interest.”
One of the things that is amazing about this story is that the company, which used exclusionary tricks not to mention actual fraud, recently raised hundreds of millions of dollars at a value of over 30 billion dollars. These investments were made by venture capital funds and hedge funds that manage the financial elite’s billions of dollars. Legions of accountants, lawyers, analysts and economists examine these millions of investments. But it is possible that all these replica investments in this dubious company passed under the radar and did not turn on a red light among investors, the press and the public? The answer in one word is: transparency. Or in two words: lack of transparency. When things are conducted in secret, when the books and numbers are not made public, when it is not clear how the investors’ money is handled – this is a wide breeding ground for fraud and claims.
Extreme credit was even given to the FTX managers that everything they did was legal (it wasn’t), but now who will believe them when above them they didn’t bother to clearly inform the public of their moves? Transparency is one of the most important keys in the conduct of the capital market and the investment world, as expressed by the famous saying of Louis Brandeis, the first Jewish judge appointed to the Supreme Court of the United States: “Sunlight is the best disinfectant, and the light of the lamp is the most effective policeman.”
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This basic lesson was also understood by the father of the Israeli nation, Avraham Avino, according to what is narrated in our parashah, Parashat Hai Sara. The episode tells about the death of the first national mother, Sara Amno. Before Abraham could concentrate on mourning, he had to take care of her burial, and then he had to make the first recorded purchase of a piece of land in the Land of Israel – the purchase of the Cave of the Machpelah in the field of Efron the Hittite – the field and the cave in it and all the trees in the field.”
The Torah, unlike usual, extends the details of the negotiations and dialogue between Avraham and the sellers from the sons of Het. This is how Rabbi Avraham Ibn Ezra explains the meaning of the Torah’s preoccupation with the purchase of this real estate: “Remember this parasha to announce the virtue of the Land of Israel to all the lands – to the living and the dead.” This is why Jews throughout the generations dreamed and hoped to return to the Land of Israel and even made special efforts at the very least To be buried in it, because even for the dead there is virtue in it.
Two things stand out in the description of the negotiations to buy the cave. The first is Avraham’s insistence on paying “full money” for an area that was actually offered to him for free. Thus, at the beginning of the negotiations, even before he speaks with Efron, Avraham turns to the sons of Het and asks them: “I will live and dwell among you, give me possession of a grave and I will be buried when before me.” The answer of Bnei Het expresses the great respect they acquire for the father of the Israeli nation: “We heard, Lord, you are the president of God in our midst, in the selection of our graves you buried your dead, no one from him could take his grave from you from the grave of your dead.” That is, no need to buy – take for free.
After that, when Abraham talks to Ephron, he offers him this: “I gave you the field, and the cave in it I gave you, in the sight of my people I gave you a grave for your dead.” However, Avraham refuses the two generous offers: “If it is your heart to bury Mati before me,” Avraham answers to the sons of Het, “Sear me and strike me with Ephron son of Zohar, and he will give me the cave of Machpelah that he owns, which is at the end of his field. Full money will be given to me“. And to Efrom’s suggestion, Avraham replies: “But if you listen to him, I gave the field money Take from me.” Why does Avraham insist on paying for something that is offered to him for free?
The various commentators emphasize Avraham’s fear of deception or lack of sincerity or a real willingness to give him the field, which may later cause a challenge to his possession and the possession of his descendants in the cave in Hebron, the city of the ancestors. That’s why they extend the explanations of how Avraham did everything in his power to make sure that the property would indeed be fulfilled in full: “Here is your share Avraham buys the cave in an order that there is no appeal after it” according to Rabbi Chaim Ben Atar in his book Or Ha’im.
Clues to these differences can be found in the choice of words in the dialogue between the parties. Avraham asks that the sons of Het They will give him the field itselfthen, after the field is his anyway he can bury Sarah: “give me Grave estate with you And Akbar Mati Before.” The sons of Het agree that Abraham will bury his dead in their graves, but say nothing about the transfer of ownership of the field: “By choice we buried Bury your dead” – you can bury your dead, but the graves will remain ours.
Avraham changes tactics. He says “If you have your soul to bury You are Mati from before me,” that is, if you really want to help me bury Mati, “Listen to me and hit me with a pencil Ben Tzohar and will give me the cave of the doubles.” That is, only after he emphasizes the goal does he explain that in order to bury Mati I must get ownership of the cave. Efron, indeed, agrees to the sale, even offers to transfer the ownership for free: the field I gave To you and the cave in which I gave you… your death”, but this is another warning light for Avraham who fears that without official ownership of the money the ownership will always remain under potential challenge and therefore he pays “full money”.
The reason for the initial disagreement of Bnei Het to transfer the ownership of the field is that the sale of the ancestral property was an act that he would not do, certainly not a sale to a “resident and resident” and not to a local person, therefore it was a precedent-setting act. Avraham is not willing to have any concerns and appeals about this precedential act, so he insists on a property in full money that cannot be contested.
The second point What stands out in the story of Abraham’s purchase of the cave is the emphasis on the fact that the whole negotiation done publiclyIn plain sight, a point that the Torah repeats on several occasions. First, Abraham addresses, as we have seen, all the sons of Heth and not to one or another person: “And Abraham rose from the face of his dead and spoke to Bnei Het“. If he wants the Mereat Machpelah in Sed Efron the Hittite, why not contact him directly? But Abraham is looking for a public event.
After their generous offer to bury Sarah for free, the Torah repeats and says: “And Abraham stood up and bowed down to the people of the land.” When Ephron replies to Avraham, the Torah states: “And Ephron answered Avraham the Hittite.” In the ears of Bnei Het, everyone is at the gate of his cityRabbi Ya’akov ben Rabino Asher, the owner of the Torim, interprets: “According to Avraham, it was necessary to announce to everyone at the gate of the city, even to foreigners.”
And Efron emphasizes: “In the eyes of my people I gave you a grave for your dead,” and again when Abraham answers: “And he spoke to Ephron I listen to the country“. And also with the closing of the deal: “And Avraham listened to Efran, and Avraham weighed to Efran the money that he had spoken In the ears of my sons“. Why the repeated emphasis that everything is done publicly? Or in the words of Rabbi Chaim Ben Atar: “And because whoever had to buy a grave estate or one field for his grove or plantation would have to graze the earth and its inhabitants!?”
The answer is yes. In matters of public significance, in precedent cases, a deal concluded in private rooms between two people is meaningless. Avraham wants transparency. Not only the sale is done in front of everyone, but also the negotiations and the final amount is publicly announced. There are no tricks and no tricks under the table because the best disinfectant that prevents corruption, doubts and combinations – is sunlight.