South Korean Funeral Firms Face Insolvency Amid Crypto ETF Losses

[Oshosondy]

You can use a translator to translate it, most browsers today have translator
https://phemex.com/news/article/south-korean-funeral-firms-face-insolvency-amid-crypto-etf-losses-83453

This is it after I translated it to English:

Several South Korean prepaid funeral service companies are facing insolvency after misappropriating customer funds to invest in cryptocurrency-linked assets. Investigations reveal that 32 out of 75 sangjo companies have assets below their prepaid customer funds, with Parental Love, a leading firm, suffering significant losses. The company invested 59.5 billion KRW in a leveraged Ethereum-themed ETF, Bitmine, which plummeted in value to 10.2 billion KRW, resulting in a $330 million unrealized loss. The prepaid funeral industry in South Korea is not subject to stringent financial regulations, as it is classified as a "prepaid installment transaction business." This lack of oversight has allowed some companies to misuse funds, including lending to major shareholders. Industry experts warn that without regulatory intervention, the risk of "zombie funeral companies" persists, potentially leaving firms unable to fulfill customer withdrawal requests.

Investing in bitcoin would have been better, but they do not know. Either they will be in profit by now or the loss will be smaller than this. Ethereum has falling from almost $5000 to $2110 and the firm may become insolvent if no intervention.

Another thing is that people and organizations should first research before investing. But I am also feeling now that those well known people that were saying there will be no bear market really mislead many investors. They will not listen to people like us but they can listen to well known people like Saylor that have plans ahead if bear market comes.

[Doan9269]

This is one of the reason why bitcoin is the most considerable investment asset and not sports bitcoin ETF, it is not proper that we invest in Bitcoin through a third party or even on a centralized assets that uses bitcoin market price for their profit marginalization, maybe this is going to serve as the lesson to them to reconsider or continue as the usual way, but everything about bitcoin talks on how we could have control over the assets and determine how profitable we could be after investing, the longer the time the better for us to make profit.

[Zlantann]

Investing in bitcoin would have been better, but they do not know. Either they will be in profit by now or the loss will be smaller than this. Ethereum has falling from almost $5000 to $2110 and the firm may become insolvent if no intervention.

Another thing is that people and organizations should first research before investing. But I am also feeling now that those well known people that were saying there will be no bear market really mislead many investors. They will not listen to people like us but they can listen to well known people like Saylor that have plans ahead if bear market comes.

Without governemnt regulating these businesses, they will engage in high-risk investments that might bankrupt the business. Many businesses have tried to copy Michael Saylor's business model in MicroStrategy without a proper understanding of the challenges that can be faced. Investing in Bitcoin might be a better option but they should be able to know their risk limits before investing. Investors will lose confident in the business if they fail to give customers their funds when they request for it.  

I am surpised that funeral companies is a big industry in South Korea. This is not the case in my location where funeral services are offered by small businesses.

[Exitoral]

Investing someone's money without their consent first of all is illegal. That's stealing. No other way to paint it. Who ever did that, did it out of greed. Nothing more or less.  He or she things an opportunity presented itself and wanted to make it big at one go. A greedy mindset. Now a lot of people's fund have been lost to greed. That person should be arrested.
Like OP said if they had invested in bitcoin, I don't see any like this happening at all. DCA is the only way to surely accumulate significant amount of bitcoin over time.

[Mhizlove]

Investing someone's money without their consent first of all is illegal. That's stealing. No other way to paint it. Who ever did that, did it out of greed. Nothing more or less.  He or she things an opportunity presented itself and wanted to make it big at one go. A greedy mindset. Now a lot of people's fund have been lost to greed. That person should be arrested.
Like OP said if they had invested in bitcoin, I don't see any like this happening at all. DCA is the only way to surely accumulate significant amount of bitcoin over time.

Honestly apart from greed, is lack of transparency and accountability that causes this kind of matter most because if someone can touch people's money without being permitted, it shows that the system isn't secured and trust has already been broken. This is a lesson and no Matter how sure the investment sound, the control of your money and clear consent is very important. Even when it comes to bitcoin matters, discipline, personal responsibility and patience do protect someone alot but you see trying rush or out smart the process won't do any good.

[Fortify]

You can use a translator to translate it, most browsers today have translator

Investing in bitcoin would have been better, but they do not know. Either they will be in profit by now or the loss will be smaller than this. Ethereum has falling from almost $5000 to $2110 and the firm may become insolvent if no intervention.

Another thing is that people and organizations should first research before investing. But I am also feeling now that those well known people that were saying there will be no bear market really mislead many investors. They will not listen to people like us but they can listen to well known people like Saylor that have plans ahead if bear market comes.

This sounds like straight up fraud to be frank, they were investing in crypto when it reached it's peak many months ago and when it all imploded were left holding losses. They probably cashed out and paid off the first customers, but as the losses mounted they stopped being able to pay everyone off. It's yet another tail of greed where the owners of these companies saw a line trending up but didn't actually understand the sheer volumes of money that made it exponentially harder for it to keep rising up. I doubt they even had a cash out point, they just got on the ride without any plan to get off but hoped it would make them stinking rich - a classic fail.

[Cryptomultiplier]

You can use a translator to translate it, most browsers today have translator
https://phemex.com/news/article/south-korean-funeral-firms-face-insolvency-amid-crypto-etf-losses-83453

This is it after I translated it to English:

Several South Korean prepaid funeral service companies are facing insolvency after misappropriating customer funds to invest in cryptocurrency-linked assets. Investigations reveal that 32 out of 75 sangjo companies have assets below their prepaid customer funds, with Parental Love, a leading firm, suffering significant losses. The company invested 59.5 billion KRW in a leveraged Ethereum-themed ETF, Bitmine, which plummeted in value to 10.2 billion KRW, resulting in a $330 million unrealized loss. The prepaid funeral industry in South Korea is not subject to stringent financial regulations, as it is classified as a "prepaid installment transaction business." This lack of oversight has allowed some companies to misuse funds, including lending to major shareholders. Industry experts warn that without regulatory intervention, the risk of "zombie funeral companies" persists, potentially leaving firms unable to fulfill customer withdrawal requests.

Investing in bitcoin would have been better, but they do not know. Either they will be in profit by now or the loss will be smaller than this. Ethereum has falling from almost $5000 to $2110 and the firm may become insolvent if no intervention.

Another thing is that people and organizations should first research before investing. But I am also feeling now that those well known people that were saying there will be no bear market really mislead many investors. They will not listen to people like us but they can listen to well known people like Saylor that have plans ahead if bear market comes.

Michael Saylor with microstrategy has a well known 10 year outlook and has enough cash reserve to survive the market Incases of situation like this ever happening, so it's actually good that investors do their homework first and check how legit a business is before investing in it because of such incidents of misappropriation of funds without questions or anyone to hold accountable for such actions.

If this Korean funeral firm simply bought BTC or Eth it would have been better, but they bought into Eth ETF which of course is a difference between spot and leverage kind of investment and in this case they are facing insolvency because this is leverage they invested in.

[WillyAp]

This is one of the reason why bitcoin is the most considerable investment asset and not sports bitcoin ETF,

Not if bought at ATH.
Only if mined that logic is correct.

[Renampun]

When it comes to high-risk investments, a company should carefully consider them because crypto prices are highly volatile and unpredictable. therefore, it is recommended that companies only invest funds they have properly set aside for this purpose without disrupting the company’s operations.. because if a company invests customer funds into such high-risk assets without a solid plan, there is a high likelihood that they will face significant losses. and if they are not prepared to handle those risks, they will face financial problems and the risk of bankruptcy because they will be unable to cover the losses resulting from their investments and the pressure from customers who want to withdraw their funds.

[robelneo]

Investing in bitcoin would have been better, but they do not know. Either they will be in profit by now or the loss will be smaller than this. Ethereum has falling from almost $5000 to $2110 and the firm may become insolvent if no intervention.

I've seen this news in my feed. It seems they failed to diversify, and they failed to see this coming. I agreed that they should have chosen Bitcoin because it's a good choice for their portfolio; it will take some time for them to recoup those losses, provided the market shift comes sooner.
Companies and people should take this lesson on how uncertain the market is.

[Nathrixxx]

I still don't get it in this direction that people will have to invest in Bitcoin through a centralized platform, the reason for Bitcoin creation is to help everyone manage their finances themselves and also invest on a profitable asset so that they could have more opportunity to maximize their earnings potentials in making an investment, but sadly today, we discovered that many are going opposite this same aim and yet they still don't recognize the causes to why they will always have a reason to lose their assets.

[WillyAp]

People here on Bitcointalk seem to believe that opening a wallet is a child's play for everyone on this planet.
1st finding a good wallet with a useful user interface is paramount, than a few hundred chains are available.
Education is needed for finance and another for crypto.

[noorman0]

s-nip-
Another thing is that people and organizations should first research before investing.

Before proceeding to this step, they should first ensure there is no risk of liability for the invested funds. This type of investment is clearly an abuse of authority, even if the scenario ultimately proves profitable. At the very least, they should have a financial management policy in place that can protect them from legal entanglements.

[savetheFORUM]

I still don't get it in this direction that people will have to invest in Bitcoin through a centralized platform, the reason for Bitcoin creation is to help everyone manage their finances themselves and also invest on a profitable asset so that they could have more opportunity to maximize their earnings potentials in making an investment, but sadly today, we discovered that many are going opposite this same aim and yet they still don't recognize the causes to why they will always have a reason to lose their assets.

Maybe you don't read the OP because it was actually ETH is the crypto that is involved and then it is not the ETF's fault but it was because ETH dumped, is what the cause of the lost. Not only that but it is also said they used leverage. We know how risky leverage is. So that should have fuelled it. Last day there is also report that Harvard dumped their ETH because I think they are also in a tight situation.

These people may not be like us that are OG in crypto. For them it is hard to trust it, but the reason why they trust it now is due to the ETF. So we must in fact be happy. Also, investing in something centralized like that, still have a benefit like they don't need to manage stuff like their private keys anymore, which we know is so sensitive. A lot of people can lost it and many also don't have a chance to recover their cryptos anymore.