US Director Arrested for Alleged Fraud Involving Cryptocurrency

Federal authorities in the United States have arrested 47-year-old Los Angeles filmmaker Carl Erik Rinsch, accused of misappropriating funds allocated for filming and using them to purchase cryptocurrency.

According to case documents, in March 2020, Rinsch received $11 million from an unnamed streaming service to create the science fiction series “Conquest,” yet failed to complete a single episode.

Instead, the defendant initially made unsuccessful investments in the stock market. He then used the remaining funds to buy cryptocurrency, reportedly earning “several million dollars.”

With the proceeds, Rinsch purchased furniture and antiques valued at approximately $3.8 million, as well as five cars, including Rolls-Royce and Ferrari, watches, and luxury items totaling over $3 million. Additionally, he spent $1.8 million on credit cards and another $1 million on legal fees in an attempt to claim additional funds from the streaming service.

Meanwhile, he assured his clients that filming was underway.

The director faces charges of wire fraud, money laundering, and five counts of engaging in monetary transactions with illegally obtained property. If convicted on all counts, he faces a maximum sentence of 90 years in prison.

The case has been transferred to a federal court in New York.

As reported by The New York Times, the aggrieved party is Netflix. The publication claims that from November 2018 to March 2020, Rinsch received a total of $55 million from the company. It is alleged that $4 million invested in Dogecoin on the Kraken exchange yielded him $27 million.