Cryptocurrency Trading Traps: The Downfall of a Former State-Owned Enterprise Executive

In the world of cryptocurrency, we often hear legendary stories of getting rich overnight. However, for most ordinary investors, such luck is not common. Recently, the experience of a man who once served as the deputy factory director of a state-owned enterprise in Handan, Hebei, has attracted widespread attention. He incurred a debt of 3 million due to Cryptocurrency Trading losses, leading to a dramatic shift in the trajectory of his life.

This man once had an enviable life. As the deputy director of a state-owned coal washing plant, he earned a monthly salary of 9,000 yuan, owned a mortgage-free property and an Audi car, managed 20-30 people, and was also a deputy section-level cadre. In 2018, he got married and had a five-year-old daughter, leading a happy family life. He stated: "We can be considered a moderately prosperous family... better than some, but not as good as others." At that time, he took his daughter to travel to various places, practicing the idea of "raising daughters with wealth," and the family's financial situation was stable.

However, all of this has become a thing of the past. He showed the interface of various loan applications on his phone, showing a total loss of 3 million yuan. To repay the debts, he drives for a ride-hailing service for 13-14 hours a day, with a daily revenue of 300 yuan, leaving only 100 yuan after deducting costs. He rents a single room for 600 yuan/month, and having a private bathroom has become his last bit of dignity.

Massive debts follow like a shadow, with annual interest reaching as high as 200,000 to 300,000 yuan. Most loans are now completely overdue, and the collection calls are relentless. Even more heartbreaking is that his family has also collapsed because of this. Two months ago, his wife left with their daughter; his parents are utterly disappointed in him, and his father left a message saying: "This family no longer has you; everything about you is finished."

His cryptocurrency trading journey began in 2020. At first, he cautiously engaged in spot trading, but soon he was drawn in by the allure of high profits. To gain more returns, he started chasing altcoins and using high-leverage contracts. The leverage ranged from 10x to 100x, greatly amplifying the risks.

He described his investment strategy as "using a blunt knife to cut meat," not investing all his funds at once, but gradually increasing his investment. However, this approach did not bring stable returns, but instead led to continuous losses. He admitted: "At that time, my mind was already twisted and distorted, I was too eager to make the money back, so I would start using high leverage at what I thought was a suitable point."

Worse still, he did not set a stop-loss, or even if he did, he would cancel it, fantasizing that the market would rebound. This irrational trading behavior led to one liquidation after another.

He tried to recover his losses multiple times through borrowing, but each time ended in failure. The first loan was 220,000 yuan, the second 300,000 yuan, and the third time he even sold his sister's house to raise over 600,000 yuan. In the last instance, he mortgaged his own property, borrowing 700,000 yuan from loan sharks and 300,000 yuan from online loans to continue Cryptocurrency Trading, pushing his total debt over a million.

Borrowing money not only brings economic losses but also destroys trust and family ties. To raise money, he fabricated lies to deceive his friends and family. Ultimately, a friend revealed the truth to his wife, leading to the collapse of their marriage. When his parents learned that he had mortgaged the house, they were also completely despairing.

This story has attracted the attention of well-known figures in the cryptocurrency community. A KOL announced that he would fund him 110,000 yuan, which includes 50,000 yuan in direct assistance and 60,000 yuan as living expenses for a year, hoping to help him through tough times and advising him to refrain from continuing cryptocurrency trading.

However, considering his addiction to Cryptocurrency Trading and the obsession with "turning things around," it remains to be seen whether this kind-hearted help can truly prevent him from repeating his mistakes. Currently, he is still working as a ride-hailing driver to make ends meet, facing huge debts, and the road ahead is still full of challenges and uncertainties.

This true story reveals the risks of cryptocurrency investing, especially for ordinary investors lacking professional knowledge and risk management skills. It reminds us that in the pursuit of wealth, rationality and moderation are equally important.