A South Korean funeral operator reportedly lost around $33M after using client pre-paid funeral funds in a leveraged
$ETH -related position.
The company, Boomosarang, placed about $43M into a 2x leveraged ETF linked to BitMine, one of the largest corporate holders of Ethereum. After the recent crypto correction, the position reportedly fell to around $7M.
Key points:
-Funds came from real client pre-payments
-The position used 2x leverage
-A normal
$ETH correction became a major capital loss
-Client refund pressure is now a serious concern
The core issue was not
$ETH itself, but the combination of leverage, treasury mismanagement, and the use of client funds for speculative exposure.
Leverage can amplify gains during strong markets, but it can also accelerate losses during volatility.
#ETH #Ethereum #CryptoRisk #Leverage #RiskManagement