Hollywood director Carl Rinsch found guilty of diverting $11 million in Netflix funds into crypto

The crypto industry is often seen as a risky space where people can quickly lose both their own savings and the money entrusted to them. This reality was brought to light with Hollywood director Carl Rinsch, who was convicted of defrauding Netflix by diverting $11 million into cryptocurrency trading and luxury purchases. The case reveals how quickly funds can disappear if misused, even in high-profile, high-stakes projects.

Netflix Funding and Project Context

In 2018, Netflix commissioned Carl Rinsch, a director and screenwriter, to produce a science fiction series initially titled “White Horse”, later renamed “Conquest”. Over the course of 2018 and 2019, the streaming company invested $44 million in its production company to support the project. As part of this ongoing financial arrangement, Rinsch requested additional funding in late 2019 and early 2020, which Netflix approved.

Around March 6, 2020, $11 million was transferred to a company he controlled. Although the money was intended to finalize the series, Rinsch redirected it, passing it through several accounts before depositing it into an investment account under his own control instead of using it for production.

Subsequently, the 48-year-old director used the funds for personal expenses and high-risk investments. In just two months after receiving $11 million, he had lost more than halfbut continued to divert the rest of the money intended for the series, placing it in cryptocurrencies and purchasing luxury items.

Those expenses included more than $1.7 million in credit card payments, more than $3.3 million in antiques and furniture, a Swiss watch worth about $387,000, and luxury vehicles — including five Rolls Royces and a red Ferrari — totaling about $2.4 million.

Rinsch's Conviction and Financial Consequences

As a result of these actions, Rinsch was convicted after a week-long trial in United States District Court, presided over by Judge Jed S. Rakoff:

• He was convicted of wire fraud, a charge that carries a maximum sentence of 20 years in prison;
• Additionally, he was indicted for money laundering and five counts of financial transactions with illicit proceeds, with each charge carrying increased possible prison time;
• Combining all charges, his sentencing is scheduled for April 17, 2026, and he could face a total prison term of up to 90 years.

Before the sentencing, Netflix had already canceled “Conquest” in 2021 after Rinsch and his company failed to meet any of the planned production goals, leading to the company losing $55 million of its investment. None of the funds have been recovered.

Despite these losses, Rinsch previously made a significant gain in cryptocurrency, turning a $4 million investment in Dogecoin into $27 million in 2021. However, this money was reportedly used to fund his personal luxury spending rather than the planned production of the series.