In a striking turn of events, a South Korean funeral services company named Bumo Sarang has suffered a significant paper loss after putting customer-linked funds into a high-risk Ethereum-related exchange-traded fund. The firm, which ranks as the country’s seventh-largest in its sector, allocated approximately 59.5 billion won—equivalent to around $40 million—into a leveraged ETF that tracks Bitmine, a company known for holding a substantial Ethereum treasury.
According to reports from the Korea Economic Daily, the investment’s book value had plummeted to just 10.2 billion won by the close of 2025, resulting in an unrealized loss of about 49.3 billion won, or roughly $33 million. A spokesperson for Bumo Sarang downplayed the situation, describing it as a short-term, controllable loss driven by global market swings that falls within the company’s financial safety net.
The specific product involved is the T-REX 2X Long BMNR Daily Target ETF, which aims to deliver double the daily returns of Bitmine’s stock. Leveraged ETFs like this one reset daily, meaning they can amplify losses during volatile periods. Bitmine, a major holder of Ethereum, saw its fortunes tied closely to crypto market sentiment, making the investment particularly risky.
This incident has reignited scrutiny over South Korea’s funeral mutual aid industry, which collects prepayments from customers but operates under the Fair Trade Commission rather than strict financial oversight. A review of audit reports from 75 funeral firms revealed that 32 companies, or 42.7%, held total assets less than their prepaid customer balances, posing potential refund risks if many clients cancel simultaneously. Additionally, another operator, Christian Funeral Family of Faith, reported a net loss of 500 million won in 2025, adding to concerns about the sector’s stability.
The Bumo Sarang loss underscores broader issues around the use of customer funds in speculative investments. While South Korean retail investors have shown strong interest in Ethereum-linked products, the volatility of such assets can lead to severe consequences for firms that rely on prepaid funds. This case serves as a cautionary tale about the intersection of cryptocurrency exposure and consumer protection, highlighting how leveraged products can create major losses outside traditional trading platforms.