Paul Pierce settles with the SEC for $1.4 million
A former NBA player named Paul Pierce has settled with the United States Securities and Exchange Commission in the amount of $1.4 million over allegations that he promoted a cryptocurrency token project on social media.
According to an announcement issued by the SEC on February 17, Pierce is accused of promoting the EthereumMax (EMAX) token through social media platforms without disclosing that he had received money for the promotion and making “false statements” about the project. and misleading representations”. In addition to his publishing posts on Twitter allegedly showing false information regarding revenue, the promoters allegedly paid the ex-NBA a whopping $244,000 to EMAX, as stated by the SEC.
In the past, regulatory bodies for the financial markets have gone up against celebrities who were pushing the EthereumMax token. Pierce was accused of failing to disclose a payment of $250,000 for publishing a story on his Instagram promoting the EMAX token. In October 2022, the SEC announced that it had settled with Kim Kardashian in the amount of $1.2 million for charges that were similar to those facing Pierce.
SEC Chairman Gary Gensler said that “this case is yet another reminder to celebrities: The law requires you to disclose to the public who and how much you are paid to promote investments in securities.” Has been, and you can’t lie to investors when you claim to be a security.” “This case is yet another reminder to celebrities that the law requires you to disclose to the public who and how much you are being paid to promote investments in securities,” “When Celebrities Invest in Crypto.” When celebrities advocate investment options, including asset securities, investors should be careful to do research to see if investments are suitable for them, and they should be aware of why celebrities are making such recommendations. “