Bumo Sarang, one of South Korea's largest funeral service companies, has collapsed after management diverted prepaid funeral funds — money entrusted by thousands of families to cover future burial costs — into leveraged crypto-related ETFs. The firm reportedly concentrated exposure in BMNU, a 2x daily leveraged ETF, turning what should have been a protected liability reserve into a high-volatility speculative position.
The implosion is a textbook case of duration mismatch weaponised by leverage: prepaid funeral contracts are long-dated, low-risk obligations, and the families who paid in had no visibility into how the funds were being deployed. When the leveraged position moved against the firm, the losses compounded daily — the structural feature that makes 2x ETFs corrosive in a drawdown.
The story lands alongside two other major May 21 data points: SpaceX's balance sheet now carries…
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