Hollywood Director Carl Rinsch Convicted for Diverting $11M Netflix Funds into Crypto

The crypto sector is often seen as a risky space where people can quickly lose both their own savings and money placed in their care. This reality came into sharp focus with Hollywood director Carl Rinsch, who was convicted of defrauding Netflix by diverting $11 million into cryptocurrency trades and luxury purchases. The case reveals how quickly funds can disappear when misused, even in high-profile, high-stakes projects.

Netflix Funding and Project Background

In 2018, Netflix commissioned Carl Rinsch, a director and screenwriter, to produce a science fiction series originally titled “White Horse,” which was later renamed “Conquest.” Over the course of 2018 and 2019, the streaming company invested $44 million in his production company to support the project. As part of the 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 complete the series, Rinsch redirected it, moving it through multiple accounts before depositing it into an investment account under his own control instead of using it for production.

Following this, the 48-year-old director used the funds for personal expenses and high-risk investments. Within just two months of receiving $11 million, he had lost more than half , yet he continued to divert the remaining money from the series, putting it into cryptocurrencies and purchasing luxury items.

These expenditures included over $1.7 million in credit card payments, more than $3.3 million on antiques and furniture, a Swiss watch valued at roughly $387,000, and luxury vehicles—including five Rolls Royces and a red Ferrari—totaling approximately $2.4 million. 

Rinsch’s Conviction and Financial Consequences

As a result of these actions, Rinsch was convicted after a one-week trial in U.S. District Court before Judge Jed S. Rakoff :

• He was found guilty of wire fraud, a charge that carries a potential sentence of up to 20 years in prison ;
• In addition, he was charged with money laundering and five counts of conducting financial transactions with unlawful proceeds, with each of these charges adding to the possible time he could spend in prison ;
• Combining all the charges, his sentencing is scheduled for April 17, 2026, and he could face a total prison term of 90 years.

Prior to the conviction, Netflix had already cancelled “Conquest” in 2021 after Rinsch and his company did not complete any of the planned production targets, resulting in the company losing its $55 million investment. None of the funds have been recovered.

Despite these losses, Rinsch had previously achieved a significant gain in cryptocurrency, turning a $4 million Dogecoin investment into $27 million in 2021. However, the money was reportedly used to support his personal luxury expenditures rather than the intended production of the series.