Netflix Funds Rerouted Into Crypto Speculation

Hollywood director Carl Rinsch has been convicted in U.S. federal court after prosecutors showed he diverted $11 million in Netflix production funding into cryptocurrency trading, using money intended for a sci-fi series to fuel speculative bets and personal spending.

Rinsch was commissioned by Netflix in 2018 to develop a science fiction series initially titled White Horse, later renamed Conquest. The streaming company ultimately committed more than $44 million to the project. In early 2020, Rinsch requested a $11 million top up to help complete the series, which Netflix complied with.

But instead of allocating the funds to production, court records showed that Rinsch had tried to embezzle the money by moving it through multiple accounts before depositing it into an investment account under his personal control.

From there, he squandered the money on risky investment, losing more than half of the money in just 2 months. Despite that, he doubled down on his actions, spending even more funds on cryptocurrencies and luxury goods.

Prosecutors argued that the pattern demonstrated deliberate misappropriation rather than creative mismanagement, forming the basis of the wire fraud and money laundering charges.

Dogecoin Windfall and Personal Spending

While much of the diverted funding was lost, Rinsch did record one high-profile crypto win. In 2021, he reportedly turned a $4 million Dogecoin position into approximately $27 million as meme-driven markets surged. The profits, however, were not used to revive the stalled Netflix project or return funds to the company.

Instead, evidence presented in court showed the money supported an increasingly lavish lifestyle. Rinsch spent millions on luxury vehicles, including multiple Rolls-Royces and a Ferrari, along with high-end watches, antiques and furniture. He also used a significant portion of the funds to cover personal credit card expenses, further reinforcing prosecutors’ claims that the crypto activity served personal enrichment rather than production needs.

Netflix ultimately canceled Conquest in 2021 after no meaningful production milestones were met, writing off an estimated $55 million investment. None of the diverted funds have been recovered.

After a one-week trial in U.S. District Court, a jury found Rinsch guilty of wire fraud, money laundering and multiple counts of conducting financial transactions with unlawful proceeds. Wire fraud alone carries a potential sentence of up to 20 years, with the additional charges significantly increasing his total exposure.

If sentenced consecutively, Rinsch could face up to 90 years in prison. His sentencing hearing is scheduled for April 17, 2026. The conviction underscores how crypto’s speed and opacity can amplify financial misconduct when fiduciary boundaries collapse, even outside traditional financial institutions.