Market News

Ronin Director's Fraud Case Reveals Risks in Crypto Investments Linked to Netflix

Carl Erik Rinsch, the director of '47 Ronin,' has been convicted of stealing $11 million from Netflix, with a portion of those funds funneled into cryptocurrency investments.

The U.S. Attorney’s Office in New York reported that Rinsch gambled the stolen money on speculative stock options and crypto transactions.

He faces serious charges, including wire fraud and money laundering, each carrying a maximum of 20 years in prison.

Moreover, he was found guilty of five counts related to monetary transactions connected to unlawful activities, each carrying a potential 10-year sentence.

Interestingly, Rinsch reportedly invested $4 million in Dogecoin, leading to profits of nearly $27 million.

The case underscores the potential risks associated with cryptocurrency investments, especially when intertwined with fraudulent activities.

Rinsch had previously received $44 million from Netflix for a sci-fi project titled 'White Horse' which remains unfinished.

Despite a hefty investment, he mismanaged the additional $11 million by transferring it through various accounts for personal and speculative purchases.

Within weeks, Rinsch reportedly lost more than half of the funds he received, which highlights the volatile nature of speculative trading.

Sentencing is set for April 17, 2026, and Rinsch's case may set a precedent for how contractual disputes can be interpreted in the context of fraud.