Why did Bumo Sarang lose more than $32 million on Ether-linked ETFs?

Bumo Sarang invested customer prepaid funds into leveraged crypto ETFs tied to Ethereum and Bitmine shares. Falling Ether prices and sharp declines in Bitmine stock caused the company to record roughly $32.7 million in unrealised losses.

What is the T-REX 2X Long BMNR Daily Target ETF?

The T-REX 2X Long BMNR Daily Target ETF is a leveraged ETF designed to deliver twice the daily return of Bitmine shares. Leveraged ETFs amplify both gains and losses, making them significantly riskier than standard investment products.

Why are leveraged crypto ETFs considered risky?

Leveraged ETFs use financial derivatives and borrowing strategies to magnify daily price movements. In volatile crypto-related markets, losses can accelerate quickly when underlying assets decline sharply.

Why is a funeral company investing customer funds in crypto-linked ETFs?

South Korea’s funeral mutual aid companies manage large pools of prepaid customer money intended for future funeral services. Some providers invest these funds to generate returns, although the aggressive use of leveraged crypto ETFs has raised major concerns.

Why is this causing scrutiny in South Korea?

Reports said roughly 43% of South Korean funeral service providers hold fewer assets than the customer prepaid balances they manage. That has increased concerns regulators may need stricter oversight if customers demand refunds or cancellations during market stress.

How much did Ethereum and Bitmine fall in 2026?

Ethereum fell more than 28% year-to-date in 2026, while Bitmine shares dropped nearly 40% during the same period.

Why did South Korean investors pile into Ethereum-related companies?

South Korean retail investors increasingly rotated capital into Ethereum treasury firms and crypto-linked stocks during 2025 as enthusiasm around digital assets and alternative investments grew.

What did Samson Mow say about Korean investment flows?

Samson Mow estimated roughly $6 billion in South Korean retail capital flowed into Ethereum treasury companies. He also warned some retail investors may not fully understand the risks involved.

Image for illustrative purposes only. Not a real photo.

South Korean funeral firm hit by leveraged Ether ETF losses

Written by Jon CuthbertPublished May. 20 2026

Bumo Sarang is sitting on roughly 49.3 billion won ($32.7 million) in unrealised losses after investing customer prepaid funds into leveraged cryptocurrency exchange-traded funds linked to Ethereum.

The South Korean funeral company invested approximately $40 million into the T-REX 2X Long BMNR Daily Target ETF, which aims to deliver twice the daily returns of Bitmine stock, according to the company’s 2025 audit report.

Another funeral services provider, Christian Funeral Family of Faith, also reported a net loss linked to investment activity, renewing concerns about how South Korea’s funeral mutual aid sector manages customer advance payments.

Local reports said around 43% of South Korean funeral service providers hold fewer assets than the prepaid customer balances they manage, increasing concerns over repayment risks if customers request mass cancellations.

A spokesperson for Bumo Sarang described the losses as a “short-term unrealised loss due to global market volatility” and said the company retained sufficient financial buffers to absorb market fluctuations.

The controversy comes amid a broader wave of South Korean retail investment into Ethereum-linked companies and treasury firms during 2025 as local investors rotated capital away from technology stocks toward crypto-related assets.

Samson Mow previously estimated that roughly $6 billion in South Korean retail capital had flowed into Ethereum treasury companies, while Ethereum itself has fallen more than 28% year-to-date in 2026 alongside a nearly 40% decline in Bitmine shares.

At the time of reporting, Ethereum price was $2,106.15.