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Carl Erik Rinsch, director of the 2013 film ’47 Ronin,’ was convicted in federal court on wire fraud and money laundering charges for diverting $11 million in Netflix production funds into failed cryptocurrency trades and personal luxury purchases.
The U.S. Attorney’s Office for the Southern District of New York announced the conviction, saying Rinsch used money intended for a sci-fi series to trade options and crypto, losing more than half within two months.
Rinsch was found guilty of one count of wire fraud and one count of money laundering, each carrying a maximum sentence of 20 years in prison.
Prosecutors also secured convictions on five additional counts of engaging in monetary transactions involving unlawfully derived property, each punishable by up to 10 years behind bars. His sentencing is scheduled for April 17, 2026.
While statutory maximums allow for decades in prison, the final sentence will be determined by a federal judge.
The crypto money laundering investigation centers on a 2018 agreement between Rinsch and Netflix to produce a science-fiction series titled White Horse. Netflix initially paid $44 million between 2018 and 2019 for early episodes.
After Rinsch exhausted the original budget, Netflix approved an additional $11 million in March 2020 to complete production.
Prosecutors say that instead of finishing the project, Rinsch moved the funds through multiple bank accounts before transferring the money into a personal brokerage account.
According to court filings, Rinsch quickly pivoted the Netflix funds into risky financial bets, including crypto transactions. Federal prosecutors revealed that his crypto trading strategy failed spectacularly.
His trading was unsuccessful, and within two months after receiving the additional funds, Rinsch had lost more than half of them, the U.S. Attorney’s Office stated.
The losses intensified scrutiny around crypto money laundering, particularly when remaining funds were not returned or redirected to complete the series.
Even after heavy losses, Rinsch continued spending. Prosecutors detailed how he used the remaining funds on personal expenses instead of production costs.
Court documents show Rinsch spent at least $1.7 million on credit card bills, approximately $3.3 million on furniture, antiques, and mattresses, and purchased a $387,000 Swiss luxury watch.
He also acquired five Rolls-Royces and a red Ferrari for a combined $2.4 million. These expenditures became central evidence in proving crypto money laundering and unlawful financial transaction
U.S. Attorney Jay Clayton framed the conviction as a broader warning.
“Rinsch betrayed trust by using investor funds meant for creative production to gamble on stock options and crypto transactions,” Clayton said.
Today’s conviction shows that when someone steals from investors, we will follow the money and hold them accountable.
The statement reinforces growing federal scrutiny of crypto money laundering, particularly when digital assets intersect with traditional finance and creative industries.
Rinsch’s legal team pushed back, arguing the verdict risks criminalizing contractual disputes in Hollywood.
His attorney warned that the ruling could set a precedent allowing creative disagreements between artists and financial backers to escalate into federal fraud prosecutions.
Still, prosecutors maintain the case was not about artistic freedom—but about deliberate financial deception and crypto money laundering.
The conviction underscores how crypto money laundering allegations are expanding beyond traditional financial criminals into elite industries once viewed as insulated from federal scrutiny.
As streaming platforms pour billions into original content, this case signals tighter enforcement and rising consequences when funds are misused—especially when crypto is involved.
