South Korean funeral company suffers heavy losses on Ethereum ETFs

South Korean funeral services company Bumo Sarang has incurred an unrealized loss of 49.3 billion KRW (approximately 32.7 million USD) due to crypto-investments made with customer funds. According to a 2025 audit report, the company directed 40 million USD of its clients' money into the Ethereum-linked T-REX 2X Long BMNR Daily Target ETF (BMNU). This was reported by Cointelegraph.com reports .

This situation has raised serious concerns regarding South Korea's funeral mutual aid industry. These companies are overseen by the Fair Trade Commission (FTC) rather than financial regulators, despite managing large amounts of customer prepayments.

According to the Korea Economic Daily, nearly 43% of local funeral service providers do not have sufficient assets to cover their obligations to customers. This raises doubts about the ability to refund customer funds in the event of mass contract cancellations.

Bumo Sarang representatives called the loss a "short-term situation caused by global market volatility" and emphasized that the company's financial reserves are sufficient to manage the situation. Nevertheless, experts are concerned that many private investors do not fully grasp the risks associated with Ethereum-linked investments.