South Korean Funeral Company Wipes $33M on 2x Leveraged ETH Bet
The breakdown:
- Company: Boomosarang, South Korean funeral operator
- Funds used: Pre-paid funeral funds from real clients
- Position: 2x leveraged ETF tracking BitMine (largest corporate ETH holder)
- Entry: $43M total position
- Current value: Approximately $7M after recent crypto correction
- Loss: $33M of client money destroyed
How 2x leverage worked against them:
- BitMine tracks Ethereum through its corporate balance sheet exposure
- 2x leverage doubles gains and doubles losses
- A normal ETH correction became an 84% capital wipeout
- The math does not care about fiduciary obligations
Industry context:
- 43% of South Korean funeral homes already in financial distress
- This was not a single rogue decision — it appears sector-wide
- Management is now evaluating whether they can survive client refund demands
The actual risk management failure:
Not crypto. Not ETH. The failure was three decisions made simultaneou...