Gambling with Netflix Funds!

In an indictment unsealed on March 18 in Manhattan federal court, the U.S. Department of Justice charged Carl Erik Rinsch with fraud and money laundering. If convicted, he faces up to 20 years in prison.

According to the indictment, Netflix (though not explicitly named in court documents) paid Rinsch $11 million in March 2020 to finance storyboarding, pay actors, and edit footage for a sci-fi TV series titled “White Horse,” later renamed “Conquest.”

Instead, prosecutors claim Rinsch transferred approximately $10.5 million of those funds into a brokerage account, where he made a number of “extremely risky” trades, including call options on a biopharmaceutical company. He ultimately lost over $5.5 million on those trades.

Luck Turns in Crypto!

According to the indictment, Rinsch was more successful with cryptocurrencies. In February 2021, he made several million dollars trading crypto, which he used to purchase $3.8 million worth of furniture and antiques, five Rolls-Royces, a Ferrari, luxury watches, and over $3 million in high-end clothing.

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The Department of Justice’s filings reveal that Rinsch also spent around $1.8 million paying off credit card debts and $1 million on legal fees. These funds were partly used to sue Netflix for additional payments and to cover his divorce-related expenses.

The Series Never Aired!

According to the New York Times, Netflix canceled “Conquest” in early 2021 after Rinsch’s behavior reportedly became “erratic.” The Times reported that Netflix had paid Rinsch a total of $55 million, while prosecutors allege he received $44 million to produce the show, which was never completed or released.

Heavy Charges Filed!

Rinsch faces one count of wire fraud, one count of money laundering, and five counts of engaging in monetary transactions involving property derived from unlawful activity. Each fraud and money laundering charge carries a maximum sentence of 20 years, while each monetary transaction charge carries a maximum sentence of 10 years.

Rinsch was arrested on March 18, and his case has been assigned to U.S. District Judge Jed Rakoff in New York federal court. His attorney, Annie Carney, declined to comment outside the courtroom, according to the Associated Press.

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The post He Invested in Crypto and Stocks with Funds from Netflix Series! appeared first on Coin Engineer.

Ho’s Crimes and Her Prison Sentence

Ho committed the crimes while working at the WeChain platform, which handled payroll for Bybit from October 2021 to October 2022. She falsified payroll records and transferred $5.7 million to four crypto wallets she owned. It was reported that she sent a total of $4.2 million to these wallets. The court sentenced Ho to a total of 9 years and 11 months in prison for her actions.

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Ho used the stolen funds to finance a luxurious lifestyle, including a deposit of $750,000 for a penthouse worth over $3.7 million. She also purchased high-end items from brands like Louis Vuitton, including bags, rings, shirts, and shoes. This lavish spending was funded entirely by the money she stole from Bybit.

Police Operation and Recovered Assets

Ho attempted to launder the stolen funds, but Bybit was able to recover over $1.1 million in Tether (USDT) and $140,000 from one of Ho’s bank accounts. Police also seized assets worth over $330,000, including a Mercedes-Benz car. Despite this, Ho has not offered to repay the remaining funds to Bybit.

Before the fraud was discovered, Ho misled police by claiming that her “cousin,” Jason Teo, was responsible for the unlawful transactions. Investigations later revealed that Jason Teo did not exist. Ho’s lawyer argued that her actions were a “lapse in judgment,” but the court determined her guilty.

Ho’s 10-year prison sentence highlights security vulnerabilities in the crypto industry and the rising number of fraud cases. This Singapore case serves as a crucial lesson for crypto exchanges on how they must secure their internal systems.

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The post Woman Who Defrauded Bybit of $5.7M Gets 10 Years in Prison appeared first on Coin Engineer.