South Korean Funeral Firm Loses $33 Million on BitMine Ethereum ETF
South Korean funeral agency Bumo Sarang has booked an unrealized $33 million loss on a leveraged crypto wager. The nation’s seventh-largest supplier channeled round $40 million of consumers’ pay as you go funds right into a 2x leveraged BitMine ETF.
The disclosure appeared in Bumo Sarang’s 2025 audit filed with South Korea’s Fair Trade Commission. The firm referred to as the shortfall a short lived market transfer that it could possibly take up from its monetary buffer.
How the leveraged BitMine ETF Bet Collapsed
Local media reported that Bumo Sarang routed 59.5 billion received, close to $40 million, into the T-REX 2X Long BMNR Daily Target ETF.
The U.S.-listed REX Shares product targets a return twice that of BitMine Immersion Technologies (BMNR). By the tip of 2025, the holding’s guide worth had fallen to 10.2 billion received, round $6.8 million.
BitMine operates as an Ethereum treasury, holding thousands and thousands of ether as its major asset. That publicity left the ETF immediately tied to the altcoin’s slide this yr.
Daily leveraged products additionally lose worth by means of volatility decay in uneven markets.
A Regulatory Blind Spot in Prepaid Funeral Funds
The episode has uncovered how loosely South Korea polices pay as you go funeral funds. The sector sits underneath the Fair Trade Commission as a pay as you go installment enterprise, not any monetary regulator.
The solely binding rule requires corporations to carry half of buyer prepayments in reserve. The remaining half will be deployed in virtually something, together with high-risk securities.
“This ought to be unlawful,” said analyst Bull Theory.
A Korea Economic Daily review of 75 suppliers discovered 43% maintain fewer belongings than prepayments owed.
Six payments now sit within the National Assembly to ban speculative investments and related-party lending within the sector.
Bumo Sarang has not signaled any plan to unwind the place. Customer prepayments now hold on no matter BitMine and ether do subsequent.
The case strengthens calls in Seoul for tighter guidelines earlier than the following funeral agency chases comparable returns.
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