A U.S. filmmaker reportedly made a profit of more than $20 million from a bet on the cryptocurrency dogecoin. Netflix accuses the filmmaker of using funds meant for the production of a TV series to place risky bets on a biotech company, the S&P 500, and dogecoin.
Rinsch Lost $5.9 Million in a Matter of Weeks
Carl Erik Rinsch, a U.S. filmmaker who reportedly earned a profit of more than $20 million from a dogecoin bet, is being sued by Netflix for allegedly breaching the terms of a contract. The lawsuit accuses Rinsch of misappropriating millions of dollars that were intended to fund the production of a science-fiction television series.
Before betting on the meme coin, Rinsch is also accused of using the production funds — approximately $11 million — to place risky bets on Gilead Sciences' stock. At the time, the biotech firm had begun testing a Covid-19 vaccine and Rinsch reportedly wagered that Gilead Sciences' stock would soar if the drug proved to be effective in suppressing the virus. The filmmaker is also said to have wagered that the S&P 500 index, which had declined by 30% at that point, would continue to fall.
However, neither bet panned out and Rinsch lost $5.9 million in a matter of weeks. According to a New York Times report, in the months that followed Rinsch began to behave "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 March 18, 2021, decision to stop funding the series.
'God Bless Crypto'
Despite this decision and the subsequent exchanges between himself and Netflix as well as its lawyer, Rinsch still proceeded to use the remaining $4 million to buy dogecoin. By the time he liquidated his dogecoin position in May 2021, Rinsch's account with the cryptocurrency exchange Kraken had a balance of more than $27 million. Pleased with the outcome, the filmmaker reportedly said, "Thank you and God bless crypto."
Afterwards, Rinsch went on a shopping spree in which he bought five Rolls Royce luxury cars, a Ferrari, and a Vacheron Constantin watch worth $387,630 among other items. Overall, Rinsch is believed to have spent as much as $8.7 million.
Meanwhile, according to the New York Times report, Rinsch, who suffers from autism and attention deficit hyperactivity disorder (ADHD), insists it is Netflix which breached the terms of the contract. For the breach, the filmmaker reportedly wants the streaming service provider to pay him $14 million in damages.
An arbitrator has already heard both parties' arguments and is now expected to give a ruling, the report added.
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Source: Bitcoin.com
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