Life sends enough curve balls, and health related ones can be the worse kind. I believe this market has gotten to many, especially if they relied on the earnings in crypto for life expenses. I may know (or not) who you are referring to, but either way, life can be harsh, but reputation, once lost, is hard to rebuild.
Yeah, reputation is actually everything, somehow we forget it's difficult to rebuild. Since we know the person, I hope they can pick themselves up, explain why they cannot pay back and try to do better. It's a rough life, and no one can deny that.