A former NBA player named Paul Pierce has reached a settlement with the United States Securities and Exchange Commission in the amount of $1.4 million on allegations that he promoted a cryptocurrency token project on social media.
Pierce is accused of promoting EthereumMax (EMAX) tokens via social media platforms without revealing that he had received money for the promotion and of making “false and misleading representations” about the project, according to an announcement released by the SEC on February 17. In addition to his publishing posts on Twitter that reportedly showed incorrect information regarding revenues, promoters allegedly paid the former NBA great 244,000 worth of EMAX, as stated by the SEC.
In the past, the regulatory body for financial markets has gone against celebrities who were pushing EthereumMax tokens. Pierce was accused of failing to disclose a payment of $250,000 to publish a story on her Instagram promoting EMAX tokens. In October 2022, the SEC announced that it had reached a settlement with Kim Kardashian in the amount of $1.2 million for charges that were very similar to those that Pierce was facing.
SEC Chair Gary Gensler stated that “this case is yet another reminder to celebrities: The law requires you to disclose to the public from whom and how much you are getting paid to promote investment in securities, and you can’t lie to investors when you tout a security.” “This case is yet another reminder to celebrities that the law requires you to disclose to the public from whom and how much you are getting paid to promote investment in securities,” “When celebrities advocate investment options, including crypto asset securities, investors should be cautious to do research to see whether the investments are suited for them, and they should be aware of the reasons why celebrities are making such recommendations,”