Topic: Chinese Crypto Trader Committed Suicide ( lesson for all crypto traders ) (Read 785 times)

amen brother, its just money after all its not the most important thing in life and should never be a reason for killing yourself, ofc this is a special case becuse this is crazy much money, and guess he took investors money and used them also.
but this is realy sad its just money after all. greed kills.

I can't understand why he didn't just invest the money in companies that have been around for over 50 years and get a nice interest. Even a shit interest on that much money is a crap ton of money.

Should be really put up on someones mind that never ever invest the money which you cant afford to lose.

Being impulsive can really be faced along the way and if you don't know how to handle yourself then such greedy actions would be made and in result you would potentially lose it all.

This is really very sad news. Perhaps it was his last money and therefore he could not stand such a loss. But still it is not a reason to leave life.  I would also like to ask all traders to be careful and do not do anything stupid because of some little things.

This is really sad news and my heart goes to his family and loves one. It is a big and hard way to learn. High leverage is not different from gambling and having a mind of double your earning is a temptation to lose. If you want to remain in trading for long then always invest money that you know if you lose it you will not commit suicide or putting your family and your life at risk.

I bet also if he gets profit from his trade with the capital of 2000 bitcoin then he will be the person who has a lot of money and get wealth through bitcoin. This is pointed out trading bitcoin has a big risk that should be know by everyone, it's not easy to predict which price will be addressed, up and down which can make you get a profit or get a loss. The choices only two, first choice put a huge amount of money into trading and the result are you have a huge profit even more then your capital and get a huge defeat and make you bankrupt. The second choice is put the money with the small amount and set management risk and you will get a wealth slowly.

What I see from those people who did committing suicide is the thinking that after everything didn't materialized according to what they've expected, only committing this act will be the best solution as they don't want to see what will future can bring them after this situations, I agree that there's always a second chance and life is more important that anything inside this world, as long as you have your life you can think of something that will allow you to survive.

Margin trade is actually not that bad, there are people who has practiced this successfully and has never lost any of their trade, that is why anyone that is going into trading must really ensure that he is very sure of his trading skills, without those trading skills, such trader will go nowhere, and out of that skill is when the trader ought to know that greed is very bad, because in the case of this Chinese man, what lead him to his early grave was not the margin, if he had gone into having very low leverage, then he may not have lost all now, but I guess he probably leveraged more than what is account could control which is quite a greedy nature.

I don't know why some people don't think whether there is ever going to be a second chance for them before committing any suicide. That's very bad and shouldn't be done. If you're here and you're thinking of the same thing, stop it… that you lost everything doesn't mean that the world is over, that might even be the time you are about to see the biggest blessing ever come into your life.

Always give life as many chance as you can and keep on working hard. And just like the up has said, being greedy is very bad and can lead any trader to being a complete loser. Every trader should also know how to manage risk… that's very important. And stop trying to so hard, if your trade is not going well for that day, just forgetting it and wait for another day.

Trading may seem easy for anyone that has not tried but one of the most difficult aspects is to remain calm when you lose money, it is obvious this person was not really prepared for the consequences of losing his trades and now he has lost something even more valuable, so anyone that is thinking about becoming a trader needs to be honest with themselves, are you prepared to lose all your capital if things go wrong? If the answer is no, then do not trade since it does not matter how high is your skill level you do not have what it takes to be a trader.

Its sad when I hear news like this, people committing suicide because they lose a lot of money. Life is the most important thing and we have life we can rebuild whatever we have lost. This should be a lesson to all traders that we shouldn't invest too much money.

You're right about that. Of course its not a solution, its going to make things worse. However losing the money entrusted to him isn't just pennies, those people are probably going to kill him when they find out.


He is not a seasoned trader, probably just someone who wants to profit and convince people to entrust their money to him but failed. Seen some kind of movie like this in the past but end up funny.

If he is a whale, then it serves him right, I mean losing the money, but he really doesn’t deserve to die, for a guy of suchcaliber, he would have simply just run to his friend to raise him to some extent why he picks up his pieces back together and learn from his lesson.

He didn’t make the mistake of putting money into Bitcoin has investment, the simple mistake was not to trade with certain percentage and if he has to leverage at all, he would have leverage at a minimal risk that can be controlled as no one can full predict the market  no matter how pro trader such person seems to be.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

Imo, it's just because of Greed.


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.


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.

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.

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.

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.

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.

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.

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.

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.

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.

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. !!!!!!

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.

2000 BTC is big amount of money and see that man's profile maybe he have more money than that. Usually professional only use money that really free and wouldn't use all money that he have. But if the story is truth, RIP for him.

It is really helpful when a trader is setting a goal, you must know when to stop from winning and from having loss. Money is very important but don`t let it consume you that it causes you to end your life. This news is really disturbing.

This is cool!  $16 million worth investment is really a huge money in which i never imagine that this kind of huge figures really exist in Crypto investments. Maybe the guy is also a big whale that this time they made a wrong move to manipulate the Crypto market and lost everything.

Maybe he wanted to lose that money before committing suicide ?

I can't imagined, someone in his position losing that much money like that, otherwise.


agree

 I think a wise man who also happens to be a crypto trader cannot think of suicide as a mean to escape the chaos or worries posed by risk in the financial world. We have so many newbies in the crypto market daily and they find it hell tough to deal with things but eventually make it to the top. So I think there could have been other reasons we do not know about.

The pointers given in the OP is the usual and common approach. Kind of human nature to knows those especially for a crypto trader that lurking in the crypto for a long time now.

This case isn't really can consider as a lesson for crypto traders. He is a CEO so basically, he already knows how to deal with trades and have knowledge on some problems along the way.

If ever the news is true and authentic, there are other things on the way we don't know and not disclosed in public that leads to what happened now.

Above two quotes proves that the guy was an experienced trader. However, I won't say that the guy committed suicide due to 2000 BTC lose, but I'd say it was the greed who killed him.

Most probably, the guy broke the rule of his trading plan, risk management, and went all in with high leverage and got busted... GREED helps people do unexpected, unrealistic things.

Anyway, feeling serious bad for him. RIP! Condolences for his family & friends.

The lesson really here is never trader what you can afford to lose, this man knowing that he be buried in debt did what he think he can only do in order to escape that from happening. I know the pay off from a leverage trade is big but the risk is also bigger its your typical high risk high reward scenario but the problem here is he is not trading with his own money which makes the trade far more riskier. Sad that he also brought other people down with him you cannot really believe all the people you meet nowadays.

It's unfortunate to let him go and maybe he also doesn't expect to lose what he has and bet, it's very surprising with other people who are very brave to get rid of him and he forgets the mental strength he has after a disaster occurs, yes it becomes very useful learning for everyone in the future so they can avoid excessive risk, think carefully before doing something that allows them to lose because it is useful for everyone.

I'm assuming the money was mostly the customer funds instead of his own.  Because that is more than enough money to live off and fulfill most of your dreams.

High leverage is just gambling at its core and the only consistent winners are the leverage platforms.  You never know when a whale will decide to pump or dump the price a quick 10%.

If the articles I've read on this are true and the guy used 100x leverage (potentially on a site like Bitmex?), the guy was then essentially gambling with 2000BTC. Tiny moves liquidate you on 100x leverage and I would never even consider using 100x leverage even if I was 100% sure where prices will go, even with a tiny percentage of my trading stack.

I used to use 25x leverage in the past, and even that wasn't good enough for me because your liquidation price is still very close to your entry. I use 10x leverage maximum nowadays, typically on 6x. Also important that you do not ever overtrade or revenge trade- take a break if you ever feel like you want to do either of these things and do something else. It can be hard, but it's very good to know when to cut your losses early so they don't grow.

This is purely out of greed, also there can be other reasons as well same as that of the Quadrigax. Before risking such a huge fund surely he could've thought much about it. Also he's a trader who has been into the cryptocurrency trading for a much longer time period. There is something hidden in this incident and if it is true the traders who always prefer risking to get big profit will consider it a learning.

Assuming the news is true, and this person didn't pull off a QuadrigaCX, isn't what he did such a rookie mistake for a co-founder and CEO of such a platform? You would expect a lot better risk management from a person in such a position. It just doesn't add up in my opinion.

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. 

That is a sad story to read that news.
We don't have to take a big risk if we cannot take it.
It is better to use the normal and safe from the risk although the risk still there.
Use only small leverage if we don't have good skills and that will help us to prevent a big loss.

 

Is lots of money, I can not imagine taking all this money to make trade


This is a very sad news, and I think the guy must have been very shocked to learn that he lost millions of dollars, about his suicide issomething that I still can not understand, he used the company's money?


I believe they would not do it, because it would be a crime



there are cases that are not so easy to solve, let's imagine that this Chinese took the money from his clients he could not return, he only had 2 options:

- commit suicide

- be arrested and be years in jail


 

Oh yes, you can stay a lifetime and never earn even 2 million dollars and imagine $ 16 million dollars?

100x Leverage is deadly specially if you make a wrong move in margin trading if you know trading you will understand what I'm saying but based on the article this person is high risker to gamble a huge money (2000) by the way Rest in peace dude.
Always remember theres no easy way to earn huge money quickly, no lambo all you need to understand is to be positive and make hardwork.

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. 

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 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.