Director Allegedly Diverted Netflix Funds into Crypto and Stocks
The director of “47 Ronin,” Carl Erik Rinsch, is accused of taking almost $60 million from Netflix, which was meant for a sci-fi series, and investing it in the crypto and stock markets. According to The New York Times, Netflix gave Rinsch over $55 million and complete creative freedom, but did not receive a single finished episode in return. Instead, Rinsch allegedly used a large portion of the budget to invest in cryptocurrencies and stocks, as well as splurging on luxury items. The report cited evidence from cast and crew members, emails, and court filings.
Netflix Ignored Warning Signs
Despite competing with other streaming giants for Rinsch’s new show called “Organic Intelligent,” which was renamed “Conquest” by Netflix, the company overlooked several red flags. One major issue was Rinsch’s ongoing legal battles with early investors. Netflix paid $61.2 million for the rights to the series, but $14 million went to settle these disputes. When Rinsch requested more money in 2020, Netflix had already spent $44.3 million and was hesitant due to missed production milestones. Nonetheless, they sent an additional $11 million to save the production.
Rinsch’s Erratic Behavior and Risky Investments
Rinsch’s behavior became increasingly erratic, claiming to have discovered secret Covid-19 transmission mechanisms and the ability to predict natural disasters. He also made risky investments that resulted in losses, including shares of Gilead Sciences and the S&P 500 index. When Netflix stopped funding “Conquest” in March 2021, Rinsch used the remaining $11 million to bet on crypto. He transferred over $4 million to the Kraken exchange and bought dogecoin, which paid off when he liquidated his positions in May 2021 for nearly $27 million.
Controversy and Divorce Proceedings
Rinsch’s extravagant spending of his crypto winnings, including luxury cars and designer clothing, raised suspicions during his divorce proceedings. His wife’s legal team suggested that the buying spree was an attempt to hide his crypto earnings. Rinsch and Netflix are currently engaged in a confidential arbitration proceeding, with Rinsch claiming that Netflix breached their contract and owes him $14 million in damages. However, Netflix argues that payments were contingent on Rinsch meeting production milestones, which he failed to do. A ruling on the matter is expected soon.
Hot Take: Director Diverts Netflix Funds into Risky Crypto Bet
Carl Erik Rinsch’s alleged diversion of Netflix funds into the crypto market showcases the intersection of Hollywood and crypto. Despite receiving a significant budget from Netflix, Rinsch reportedly used the money for personal investments and extravagant purchases instead of producing the promised sci-fi series. This incident highlights the need for caution when investing in cryptocurrencies and emphasizes the importance of due diligence before making risky financial decisions. As the crypto industry continues to gain mainstream attention, it is crucial for individuals to approach it responsibly and be aware of potential pitfalls. The consequences of misusing funds can have far-reaching implications for both personal finances and professional relationships.
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