Korean funeral services company lost $33 million of its customers' money over a bad crypto bet — firm was secretly investing client funds into leveraged crypto ETFs
A South Korean funeral services company, Bumo Sarang, has lost approximately $33 million by secretly investing client funds into a leveraged cryptocurrency ETF. The company initially invested $40 million of prepaid funeral service money into the T-REX 2X Long BMNR Daily Target ETF, which aims to double the daily return of BitMine, a major Ethereum treasury. This investment resulted in significant losses due to the volatile nature of leveraged ETFs and the downturn in the crypto market over the past year. AI
IMPACT This incident highlights the risks of speculative investments, particularly when customer funds are involved, and underscores the need for robust financial oversight in non-traditional financial services.