Hollywood director convicted of fraud for $11 million cryptocurrency purchase on Netflix

Source: PortaldoBitcoin Original Title: Hollywood Director Uses R$ 60 Million from Netflix to Buy Cryptocurrencies Original Link: Film director Carl Rinsch was convicted of defrauding streaming giant Netflix and embezzling $11 million (approximately R$60 million) to purchase cryptocurrencies and luxury goods.

Director Rinsch, known for “47 Ronin” (2013), was charged with one count of electronic fraud, one count of money laundering, and five counts of illegal transactions involving proceeds.

The 48-year-old director was hired by Netflix in 2018 to produce the sci-fi series “Conquest” (originally “White Horse”), with the streaming company providing $44 million in funding to his production company between 2018 and 2020.

In 2020, Rinsch requested an additional $11 million to complete the series. However, prosecutors allege the director diverted these funds through multiple bank accounts, subsequently transferring the $11 million into a personal brokerage account.

He then invested in securities and lost more than half of the $11 million within just two months of receiving the funds.

Rinsch’s Expenses

The Southern District Attorney’s Office accused Rinsch of then “speculating in cryptocurrencies” while purchasing luxury goods and paying for personal expenses.

These expenses include $3.3 million on furniture, antiques, and mattresses; $2.4 million for a red Ferrari and five Rolls-Royces; $1.7 million on credit card bills; and $387,000 to buy a Swiss watch.

Represented by a team of private lawyers and public defenders, Rinsch claims innocence, but the jury found him guilty within hours.

Sentencing is scheduled for April 17, 2026, with a maximum possible sentence of 90 years in prison: electronic fraud carries a maximum of 20 years, money laundering also up to 20 years, and five counts of illegal proceeds use up to 10 years each.

At the conclusion of a week-long trial, U.S. Southern District Attorney Jay Clayton stated: “Carl Eric Rinsch embezzled the $11 million intended for the TV series to speculate on options and cryptocurrencies… Today’s verdict shows that when someone defrauds investors, we track the funds and hold them accountable.”

Netflix canceled “Conquest” in 2021 because Rinsch and his production company failed to meet any production targets, resulting in a loss of a total of $55 million invested.

The company did not recover any funds from Rinsch. According to a 2023 New York Times report, Rinsch converted a $4 million investment in Dogecoin into $27 million (2021).

It was with this windfall that Rinsch began purchasing the luxury goods listed above. According to forensic accountant Gabriela Rosas Betancur, hired by Rinsch’s ex-wife, the total expenditure was $8.7 million.