It’s not every day that you hear about a film director using a substantial portion of their budget to bet on a volatile cryptocurrency. However, Carl Erik Rinsch, the director of Netflix’s sci-fi series Conquest, reportedly did just that with Dogecoin. The consequences? A windfall of $27 million and a bitter arbitration battle with Netflix for an additional $14 million.
The saga began when Netflix agreed to fund Rinsch’s ambitious sci-fi series, allocating a generous budget of $55 million. Yet, despite the significant investment, not a single episode has been delivered to the streaming giant. According to a confidential arbitration proceeding cited by The New York Times, Rinsch now seeks an additional $14 million from Netflix.
The funding rollercoaster started in March 2020 when Rinsch requested more funds, and Netflix obliged by wiring an additional $11 million with the condition that he completed the show. However, instead of utilizing the funds for its intended purpose, Rinsch took a risky gamble.
Financial statements obtained by The Times revealed that Rinsch diverted $10.5 million from the fresh funding to engage in stock market speculation. Unfortunately, his bets on pharmaceutical companies and the S&P 500 resulted in substantial losses, nearly $6 million in just a few weeks.
With a mere $4 million remaining, Rinsch turned to the world of cryptocurrencies. He transferred the funds to the crypto exchange Kraken and invested every penny in Dogecoin. Rinsch’s risky maneuver paid off tremendously when he liquidated his holdings in May 2021, cashing out approximately $27 million.
A Lavish Lifestyle
With newfound wealth, Rinsch indulged in a spending spree that left many surprised. Allegedly, he splurged nearly $9 million on luxury items such as high-end furniture, designer clothing, a luxury watch costing over $380,000, five Rolls-Royces, and a Ferrari. These extravagant purchases were documented by a forensic accountant hired by Rinsch’s ex-wife for their divorce proceedings.
A Clash with Netflix
Unsurprisingly, Netflix took issue with Rinsch’s questionable financial choices. The streaming service firmly denies any obligation to pay Rinsch the extra $14 million he claims to be owed. Netflix characterized his demands as a “shakedown.” In a deposition, Rinsch attempted to justify his spending spree by claiming that the purchases were props for the series. However, he would later argue that the money was indeed his, further asserting his right to another $14 million from Netflix.
The Verdict Awaits
The case between Carl Erik Rinsch and Netflix has now been heard by an arbitrator, and a ruling is expected soon. The outcome of this contentious battle will undoubtedly have far-reaching implications for the entertainment industry, underscoring the importance of financial accountability and the perils of recklessness.
The tale of Carl Erik Rinsch serves as a cautionary reminder of the risks associated with speculative investments and the importance of adhering to contractual agreements. As the dust settles, both Rinsch and Netflix must await the decision that will determine the fate of their dispute and leave a lasting impact on the film and television industry.
