Chinese Crypto Trader Committed Suicide ( lesson for all crypto traders )

[JeffBrad12]

What would happen to him if he didn't kill himself?

Probably the question he face after losing all that 2000 BTC. Its going to pressure him for the rest of his life. We've all heard these kind of stories before but only those Asian guys can afford to take their life. The people behind cryptopia and mtgox didn't do it. 

And what will you do when you are loosing million dollars of money in a short time? that time will not come for the second time and i thought that if that guy was a lucky guy who has bought bitcoin when it was really cheap. If he was a real whale and then he will not do that because he will have more money to be saved as reserved funds.

[1714847041]

1714847041

[1714847041]

1714847041

[1714847041]

1714847041

[ipoelchen]

Well it looks crazy you know.
He actually lost 2,000 bitcoin, very big amount of money. Let's say the price of bitcoin now is $8,000 x 2,000 btc = $16,000,000. He lost all he had. But whos fault is it?
It is not btc fault or users one. The traders fault it is. For sure.
The first rule is DON'T INVEST MORE THAN YOU ARE AFRAID TO LOOSE. !!!!!!

[slaman29]

This isn't hilarious OP. I think it's bad taste to say any kind of death is hilarious, whether accidental. Suicidal. Whatever. People are dumb yes, people make mistakes but some have worse ill consequences than others. I remember reading about a Saudi guy who took bank loans to buy crypto at ATH and then couldn't repay it. Bank blocked all his accounts and he became a guy who didn't even have a card.

Yes let's all take the lessons and hope we all understand all the risks we are taking with not just leveraged trading but almost every decision related to crypto.

[Noilee]

Trading is pretty similar with gambling, if you put a lot of money, you should ensure you can afford to lose it, otherwise, this unfortunate thing will happen to you. Money is still the root cause here, and if this person is not greedy, he could accept his mistake and just move on although it's not that easy to do considering the amount of money he lose. 

Maybe it has a same, because you will lose if you dont know to apply good strategy, or have a good timing. So its better to accept the facts if what comes happen because you will never know if you succeed or fail. In trading you should accept the risk and dont be greedy because it can lead into the depression.

[Phonexy]

This is the highest risk have ever seen. My condolences to the family of the dude and may his soul rest in peace. This should save as a lesson to all crypto traders. Don't b greedy little drop of water make an ocean be wise. Don't use all your hard earned money in one trade hoping to lambo a bird at hand is worth more than 10,000 bird in the bush.

[Pipdips]

This isn't hilarious OP. I think it's bad taste to say any kind of death is hilarious, whether accidental. Suicidal. Whatever.

I fully agree. I mean really, the topic should be locked (or even removed) the way the OP framed it...

All of my condolences to the loved ones of this person. The level of his involvement with Bitcoin was admirable. He was one of us.

[The Sceptical Chymist]

His ex-partner revealed Yi's dead on June 5 which made some rumors that it is just an exit scam and fake his death to escape from his clients. We don't really know the truth behind it.

Ummm....a death ought to be fairly easy to verify, even in China I would think.  Most or all countries keep death records, and China is certainly advanced enough to do that.

In any case, if the death was faked as a mechanism to scam someone, that would probably be a new low in the cryptocurrency world and one for the crypto history books, whenever they're written.  It also would not surprise me in the least.  There are way too many dishonest knaves in bitcoin--but committing suicide over a $16M loss is also believable too.  I don't know how my mind would react to a loss like that.  RIP to him if he really did kill himself.

I fully agree. I mean really, the topic should be locked (or even removed) the way the OP framed it...

Oh come on, it's offensive to be sure, but this forum is all about being able to say what you want to say.  We police each other.  If you're offended, make some noise instead of going to the mods.

[el kaka22]

Why would anyone put that much money into a short leeway, if you are going to risk your money at least divide them up into much smaller numbers and do it that way or if you want to go all in then take some protections with you like lower leverage or even no leverage.

I would still not commit suicide for something like this, if I had 2k bitcoin in my name I wouldn't even need to work at all, I am the type of person who has tried early retirement and liked it so if I have enough money to retire (2000 bitcoin is waaaaay more than enough, hell I would accept 100) then I wouldn't do something this silly, I would cash it out and put it on a bank and just live the rest of my life on the interest I would get from the bank. I am not looking to spend too much money neither, I can manage to spend very little (about minimum wage) anyway.

[Ucy]

Wait, What? What is hilarious about people committing suicide?

Well, I don't have much say on this than to ask people to be careful with trading.
 I don't think it's OK to speak ill of the dead... so I will  leave this here.

[akamit]

Why would anyone put that much money into a short leeway,

Imo, it's just because of Greed.

if you are going to risk your money at least divide them up into much smaller numbers and do it that way or if you want to go all in then take some protections with you like lower leverage or even no leverage.

The most common risk management followed by almost all trading professionals is to take only 2% from the overall capital, no matter what amount of leverage you use. Some professionals are little bit aggressive and they do take a maximum of 5% from the total capital. No doubt the trader in question was a professional trader. If any trader don't stick with their trading plan, risk management and money management then every trader will fall down later or sooner.

If you go ALL IN with high leverage, then the trader is just gambling.

I would still not commit suicide for something like this,

TBH, if the money is truly yours then suicide is not an option I guess.
But if that money is from INVESTORS then the easiest way to escape is suiciding if you lost all. But, but there should be also another way to tackle the bad situation I believe.

[Oilacris]

What would happen to him if he didn't kill himself?

Probably the question he face after losing all that 2000 BTC. Its going to pressure him for the rest of his life. We've all heard these kind of stories before but only those Asian guys can afford to take their life. The people behind cryptopia and mtgox didn't do it. 

I'm actually thinking the same way where if he didn't kill himself then he would faced up lots of problems about suing him about the funds being lost.

So he decided to end up his life to avoid all the miserable things that will happen ahead.The main lesson learned on this one is never ever take a risk
that you cant really afford to solve the possible problems that it may create ahead.

[peter0425]

As @akamit have said, maybe he is willing to take all the risk because of greed. I mean that's a lot of money to begin with, and he totally gamble it and lost and maybe there's so much pressure in him that he just decided to take his own life. So let this be a lesson for all of us, that we need to mitigate and just invest what we can afford to lose. Sad ending, but it is what it is.

[Gabteb]

I dont belive that really so he used all his money in one order no seems news about fake dead is much truer than lose of such money its feels something impossible so i don't think that could happen, its a fake news nothing more.

[Shenzou]

This is a clear example what greed could do to you and how much you should think twice before you intend to make a trade, and always risk what you can actually afford to lose, i really think that this guy is just faking his death and not actually dead, obviously he is just faking it in order to escape whoever he got the money from in order to not pay them back, and he might actually commuted suicide, no one knows, but the important thing is suicide is never the answer, so don't put yourself in such a situation and always learn from other people's mistakes.

[beerlover]

Money is not something you should commit suicide over. People who commit suicide is beyond my understanding anyway, if I were to ever commit suicide which I doubt I would ever do, it would probably for a reason far my happiness related and not money related, like if I see my life going bad and not going to be good in anyway or shape and I can't fix it then I may consider it but I have to be homeless on a street corner not knowing what I will eat and can't fix that situation or so, even then I would try to wait and do my best before I even consider it. What could worse happen when you lose 2000 bitcoins?

You lost it because you had it think of it that way, maybe you can't get it all back but since you did it before maybe you can do it again? Hell you don't even need to do it again and you can just continue your life without bitcoin, if it is someone else's money then you may go to jail but eventually you will get out. Jail is a place where you can better yourself if you really focus, like reading more books or working out etc etc.

[bitgolden]

The first thing in the morning, the news appeared on my screen and I was like, "What? How?" Not until I've read the full article in this link and I've found out the real reason why he did that.

He actually lost 2,000 bitcoin, super duper big amount of money is involved here. Let's say the price of bitcoin now is $8,000 x 2,000 btc = $16,000,000 with a SHORT ENTRY AND HIGHEST LEVERAGE. He was liquidated because it immediately made a sideway.

Yi is a co-founder and CEO of market analysis crypto playform BTE. Well, I was not familiar with their company. His ex-partner revealed Yi's dead on June 5 which made some rumors that it is just an exit scam and fake his death to escape from his clients. We don't really know the truth behind it.

This is indeed a lesson for all crypto traders around the world. We just can't put an entry if we can't afford to lose. Yes, it is a huge amount. But that was just a money. I mean., we can not just die because of it. Life is beautiful and we have family and friends. The main reason we are living. We can just earn money, we can earn that $16,000,000 for lifetime. Lol.

But personally speaking, please crypto trader. I know we sometimes make an entry without thinking. But we can actually:

• Set STOP LOSS
• Enter SMALL LEVERAGE like 5x-10x only. UNDERSTAND how leveraged really works.
• DO NOT BE GREEDY
• Think of your family before you BET ALL in your capital
• Even the best TECHNICAL ANALYSIS will be useless when whales or the market is not in your side

Crypto Traders. I am very disappointed and was disturbed with the news. Big part of me was devastated. Please be careful on our entry, my fellow margin traders.

This lesson goes out to the greedy ones out there, at least with his story, they can see how not setting priority right destroys and how greed is the best killer. At first, he made a very wrong move to have invested such among of money in one trade, he could have used half to trade and keep half for long term investment which is still the safest for now. It is still greed that made him to exceeded spot trade and go for margin trade. I hope his soul rest in perfect peace.

There is still nothing as good as holding, with holding, you are guaranteed that you will always get your money back even if the price goes down. Look at people that invested when Bitcoin was $20k, they have still not lost, and they will be able to get their money back when Bitcoin goes back to $20k.

[cabron]

Money is not something you should commit suicide over. People who commit suicide is beyond my understanding anyway, if I were to ever commit suicide which I doubt I would ever do, it would probably for a reason far my happiness related and not money related, like if I see my life going bad and not going to be good in anyway or shape and I can't fix it then I may consider it but I have to be homeless on a street corner not knowing what I will eat and can't fix that situation or so, even then I would try to wait and do my best before I even consider it. What could worse happen when you lose 2000 bitcoins?

You lost it because you had it think of it that way, maybe you can't get it all back but since you did it before maybe you can do it again? Hell you don't even need to do it again and you can just continue your life without bitcoin, if it is someone else's money then you may go to jail but eventually you will get out. Jail is a place where you can better yourself if you really focus, like reading more books or working out etc etc.

Money is really a reason for us to toil and if someone lost my money I will really have to demand it back. The only he find way out is to kill himself. It may sound very uncomfortable but that's how he see it. I may not really kill myself if it happened to me but I'd be in hell everyday thinking about the loss and the blame.

[akamit]

The only he find way out is to kill himself. It may sound very uncomfortable but that's how he see it.

Killing yourself is not a solution, it's just not an option at all.
Let's say there was an investor who trusted the person in question with a large amount, but the person is dead now, so he just spoiled his life along with another one.

The best solution (before you force yourself to do a shit thing) is to not take that much risk which you cannot afford later.
The best solution (after an unexpected incident) is to find a way out to solve the problem, no matter how long it may take - talk with your investors, convince them.

[Vishnu.Reang]

I checked a few news sites and blogs that deal with cryptocurrency, and some are suggesting that he has faked his death and vanished with all the coins. Now this is the second such incident, after the infamous QuadrigaCX scandal. Back then, the CEO (Gerald Cotten) died mysteriously and he was supposedly the only one in possession of the private keys for accessing $160 million worth of cryptocurrency.

[guoyu78]

Such high risk investment surely leads to high mental pressure. Increase in price may lead to good profit but the same time little decrease in price can lead to high loss. The first rule to any investment is " Only invest the amount which you can afford to lose" taking such high risk is surely not recommended. I do not know truth behind this story but if this is true then its really sad. The person might have luxurious life but high greed made him to take such extreme step. Any investment in any financial market should be done with calculated risk.

The worst risk he even took was to have gone into leveraging with such huge amount of fund, he probably feels he can be faster than his shadow. I don’t support margin trade at all, I hate it with passion and I see how many trades that margin trade has really destroyed than the one it has made.

Why would someone in his right sense even put such money in cryptocurrency alone, when he would have just diversified, he could have used half for crypto and maybe any other solid assets that do not have much risk involved in it. Well, we have learned our lessons from his story and I believe that his friends would have learnt theirs too.