US and South Korean authorities are pursuing legal action in two high-profile cases involving financial misconduct and its consequences. In the United States, filmmaker Carl Erik Rinsch has been indicted for fraud and money laundering after allegedly misusing $11 million provided by Netflix to produce a sci-fi series, instead spending the funds on speculative stock and crypto trading. Meanwhile, in South Korea, prosecutors have requested a 10-year prison sentence for a man who attacked the CEO of Haru Invest in court after losing 100 BTC ($8.3 million) in the platform’s collapse.
South Korean Prosecutors Seek 10-Year Sentence for Haru Invest CEO Attacker
South Korean prosecutors have called for a 10-year prison sentence for a man who stabbed the CEO of local cryptocurrency custody firm Haru Invest during a courtroom hearing in August 2024. The Seoul Southern District Prosecutor’s Office confirmed the sentencing request during the final hearing on Wednesday, emphasizing the severity of the crime.
The attacker, identified as 51-year-old Kang, reportedly used a fruit knife to stab Haru Invest CEO Lee Hyung-soo multiple times in the neck. The shocking courtroom assault occurred while Lee was facing trial over allegations of large-scale fraud tied to his company’s operations. Despite the vicious nature of the attack, Lee survived without life-threatening injuries after receiving immediate medical attention.
The attack was an apparent act of retaliation stemming from the Haru Invest scandal, which saw the firm collapse under allegations of fraudulent activities that led to devastating financial losses for thousands of investors. According to prosecutors, Haru Invest had promised investors full returns on principal deposits with an annual interest rate of up to 16%. However, the firm was allegedly in a state of capital impairment since 2019 and ultimately filed for bankruptcy in November 2023 after abruptly suspending deposits and withdrawals in June of that year.
Authorities allege that from March 2020 to June 2023, Haru Invest engaged in a fraudulent scheme that extracted approximately 1.4 trillion Korean won ($962 million) from around 16,000 investors worldwide. Among those affected was the assailant, Kang, who reportedly lost 100 BTC (worth approximately $8.3 million at the time) after entrusting his assets to Haru.
During Wednesday’s final hearing, Kang’s defense lawyer argued that the crime was an act of emotional outburst rather than premeditated attempted murder. The lawyer urged the court to consider the extreme financial devastation Kang suffered and classify the charge as aggravated assault rather than attempted murder.
However, the prosecution contended that the attack was severe enough to warrant a decade-long prison sentence, pointing to the deliberate nature of the stabbing and the potential for fatal consequences.
Interestingly, CEO Lee has displayed a measured response to the attack. During Kang’s court hearing in December, Lee stated that he needed more time to decide whether his assailant should face legal punishment. He also emphasized that his primary focus remained on the bankruptcy process and attempting to recover damages for affected investors.
A Broader Reflection on Crypto Scandals and Investor Desperation
The Haru Invest scandal is yet another case illustrating the volatile and high-risk nature of the cryptocurrency sector, where high-yield investment promises can mask underlying financial instability. The firm’s downfall, combined with its alleged fraudulent activities, led to devastating losses for investors, with some—like Kang—driven to extreme actions in response.
Kang’s attack shows the profound emotional and financial toll suffered by victims of crypto fraud. It also raises broader concerns about the lack of investor protections, regulatory oversight, and the accountability of executives in the crypto space.
With Kang’s sentencing scheduled for April 4, the outcome of the case will likely set a precedent for how South Korean courts handle investor retaliation crimes in financial fraud cases. It may also fuel discussions on the need for stronger safeguards in the cryptocurrency industry to prevent such devastating losses from occurring in the first place.
Regardless of the court's ruling, the Haru Invest saga serves as a stark warning about the risks of unregulated investment platforms and the extreme consequences of financial deception.
Hollywood Filmmaker Indicted for Fraud After Allegedly Gambling Netflix’s $11 Million on Stocks and Crypto
In other legal news, US federal authorities have arrested and indicted filmmaker Carl Erik Rinsch, alleging that he misused $11 million provided by Netflix to finance a science fiction TV show, instead diverting the funds into high-risk stock and cryptocurrency trading. The Department of Justice (DOJ) unsealed the indictment in a Manhattan federal court on March 18, charging Rinsch with fraud and money laundering, crimes that could result in a sentence of up to 20 years in prison.
According to prosecutors, Netflix—though not named directly in the indictment—gave Rinsch an $11 million advance in March 2020 to support the production of the TV series White Horse, which was later renamed Conquest. The money was intended for storyboarding, hiring actors, and editing footage, but investigators claim Rinsch instead used it as a personal trading fund.
Rather than focusing on production, Rinsch allegedly moved $10.5 million into a brokerage account and began executing what prosecutors described as "extremely risky" stock trades, including speculative call options on a biopharmaceutical company. His aggressive trading strategy led to losses of more than $5.5 million.
Despite hemorrhaging funds, Rinsch reassured Netflix that production was moving forward smoothly, according to the indictment.
While his stock market gamble failed spectacularly, Rinsch found better fortune in cryptocurrency trading. In February 2021, he reportedly made several million dollars trading digital assets. However, instead of using these profits to resurrect the project, he allegedly splurged on a lavish lifestyle, spending:
$3.8 million on luxury furniture and antiques
$3 million on high-end watches and designer clothing
Nearly $1.8 million to pay off credit card bills
$1 million in legal fees to sue Netflix and cover his divorce expenses
Five Rolls-Royces and a Ferrari
Prosecutors highlighted these extravagant purchases as further evidence of fraud, stating that Rinsch deliberately misused investor funds for personal gain.
Netflix’s Troubled Relationship With Rinsch
The DOJ's indictment does not explicitly name Netflix as the victim, but The New York Times previously reported on Netflix's contract dispute with Rinsch in November 2023. According to the Times, Netflix had originally paid Rinsch $55 million for the Conquest project, while prosecutors allege he received $44 million.
Netflix reportedly canceled the show in early 2021, citing concerns over Rinsch’s "erratic" behavior and the lack of production progress.
In an ironic twist, Rinsch used a portion of the funds to sue Netflix, demanding even more money, claiming the company had wrongfully terminated the project. His lawsuit sought additional payments despite Conquest never materializing into a finished product.
Rinsch now faces one count of wire fraud, one count of money laundering, and five counts of engaging in monetary transactions derived from unlawful activity. If convicted, the penalties are severe:
Wire fraud and money laundering each carry a maximum sentence of 20 years.
Each of the five monetary transaction charges carries a maximum sentence of 10 years.
Rinsch was arrested on March 18, and his case has been assigned to New York federal court Judge Jed Rakoff.
His attorney, Annie Carney, declined to comment when approached by the Associated Press following his arrest.
With Rinsch now facing decades behind bars, the Conquest project has become more synonymous with scandal than science fiction, leaving Netflix, federal prosecutors, and the broader entertainment industry to assess the fallout of a Hollywood dream gone terribly wrong.
