Filmmaker Makes Millions After Risky Dogecoin Bet Pays Off — Facing Netflix Lawsuit.
Carl Erik Rinsch, a US filmmaker who reportedly made more than $20 million in profits from dogecoin betting, is being sued by Netflix for allegedly breaching contract terms. The lawsuit accuses Rinsch of misappropriating millions of dollars intended to fund the production of a science fiction television series.
Before betting on the meme coin, Rinsch was also accused of using production funds — about $11 million — to place risky bets on Gilead Sciences shares. At the time, the biotech company had begun testing a Covid-19 vaccine and Rinsch reportedly predicted Gilead Sciences stock would soar if the drug proved effective in suppressing the virus. The filmmaker was also said to have bet that the S&P 500 index, which was down 30% at the time, would continue to fall.
However, neither bet worked and Rinsch lost $5.9 million in a matter of weeks. According to a New York Times report, in the following months Rinsch began behaving “more erratically.” Netflix executives only became aware of the extent of Rinsch's mental health problems after his wife came forward. This ultimately led to Netflix's decision on March 18, 2021 to stop funding the series.
Despite this decision and subsequent exchanges between himself and Netflix and his attorneys, Rinsch still continued to use the remaining $4 million to purchase dogecoin. By the time he liquidated his dogecoin positions in May 2021, Rinsch's account on cryptocurrency exchange Kraken had a balance of more than $27 million. Pleased with the results, the filmmaker reportedly said, “Thank you and God bless crypto.”
Afterward, Rinsch went on a shopping spree where he purchased five Rolls Royce luxury cars, a Ferrari, and a Vacheron Constantin watch worth $387,630 among other items. In all, Rinsch is believed to have spent as much as $8.7 million.
