Filmmaker Faces Lawsuit for Misusing Production Funds on Dogecoin
A filmmaker in the United States earned a profit of USD 20 million from a bet on the cryptocurrency Dogecoin. Netflix accuses the filmmaker of misusing the funds from the production budget of a television series to place bets on a biotech company, the S&P 500, and Dogecoin.
Netflix Files Lawsuit for Breaching Terms of the Contract
Netflix has filed a lawsuit against the US filmmaker Carl Erik Rinsch, who reportedly earned a profit of more than USD 20 million from a Dogecoin bet for allegedly breaching the terms of the contract. The lawsuit alleges Rinsch of misappropriating millions of dollars from the production budget of a science-fiction television series and using the funds to place bets.
Rinsch is also accused of misusing about USD 11 million of the production funds to place bets on Gilead Sciences’ stock before betting on the meme coin. The biotech firm had begun testing a COVID-19 vaccine at the time, and Rinsch reportedly wagered that Gilead Sciences’ stock would peak to new heights if the drug could effectively neutralize 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 slide down.
Rinsch lost USD 5.9 million in a few weeks as the plan failed, and in the following months, his behavior began to change. He started behaving "more erratically," as reported in the New York Times. Rinsch’s mental health issues were revealed after his wife discussed the problem with the Netflix executives. Netflix followed it up by deciding to stop funding the television series on March 18, 2021.
Rinsch used the remaining USD 4 million with him to buy Dogecoin, despite the decision and the subsequent correspondence between himself, Netflix, and the lawyer. When Rinsch liquidated his Dogecoin position in May 2021, his account with the cryptocurrency exchange Kraken had a balance of more than USD 27 million. Delighted with the result, the filmmaker reportedly said, “Thank you and God bless crypto.”
Thereafter, Rinsch went on a shopping spree and bought five Rolls-Royce luxury cars, a Ferrari, and a Vacheron Constantin watch worth USD 387,630, among other things. Rinsch is believed to have spent about USD 8.7 million on the go.
Rinsch Files Counter-Lawsuit Demanding Damages
Rinsch, who suffers from autism and attention deficit hyperactivity disorder (ADHD), insists it was Netflix that breached the terms of the contract. The filmmaker reportedly filed a lawsuit against the streaming service provider to pay him USD 14 million in damages for breach of contract, according to the New York Times report.
The report also says that an arbitrator has already heard both parties’ arguments and is now expected to give a verdict.
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