Hollywood Director Carl Rinsch Diverts $11M Netflix Funds into Crypto - Gets Convicted

Netflix's $11 million production budget vanished into the crypto vortex—and Hollywood director Carl Rinsch just got the verdict.

The Funds That Went Off-Script

Instead of filming scenes, Rinsch rerouted the streaming giant's cash into digital assets. The $11 million transfer bypassed studio accountants and landed directly in cryptocurrency exchanges. Court documents show the funds moved while Netflix awaited a sci-fi series that never materialized.

When Hollywood Meets Blockchain

The case exposes the raw intersection of traditional finance and decentralized networks. A director cuts corporate funding chains, opting for blockchain's borderless rails. No production timelines, no studio oversight—just private keys and volatile markets. The move highlights how crypto can reroute capital flows overnight.

The Aftermath: Digital Assets on Trial

Prosecutors framed the crypto move as fraud. Rinsch's defense pointed to creative vision. The verdict landed hard: conviction for diverting funds. The $11 million crypto play now stands as evidence, not investment. It's another case where digital assets become courtroom exhibits rather than portfolio holdings.

Finance's cynical footnote? Sometimes the most dramatic plot twists happen off-screen—especially when millions jump from streaming budgets to blockchain ledgers.

In Brief

• Carl Rinsch was found guilty of defrauding Netflix by diverting $11 million meant for a series into crypto and personal luxury spending.
• Instead of using the funds for the project, Rinsch moved the money through multiple accounts and invested in cryptocurrencies.
• Rinsch faces multiple charges with sentencing set for April 2026 and potential decades in prison.

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.

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