• Paul Pierce, a former NBA player, agreed to pay $1.409 million to the U.S. Securities and Exchange Commission (SEC) as penalties for his undisclosed promotion of the unregistered securities token EthereumMax (EMAX).
• The SEC said Pierce violated the anti-touting and antifraud provisions of the federal securities laws and that he received over $244,000 worth of EMAX tokens to promote them on Twitter.
• As part of the settlement agreement, Pierce will not be promoting any crypto asset securities for three years.
Paul Pierce Agrees to Pay SEC $1.4 Million
NBA hall of famer Paul Pierce agreed to pay $1.409 million to the U.S. Securities and Exchange Commission (SEC) as penalties for his undisclosed promotion of the unregistered securities token EthereumMax (EMAX).
Touting Provision Violation
The SEC said that Pierce violated the anti-touting and antifraud provisions of the federal securities laws in addition to receiving over $244,000 worth of EMAX tokens to promote them on Twitter while making false and misleading promotional statements about it.
Kim Kardashian Fined by SEC
The same token was previously promoted by American celebrity Kim Kardashian who paid a fine of $1.26 million to settle SEC charges against her endorsement without admitting or denying their findings..
SEC Chair Speaks Out
Speaking on the charges against Pierce, SEC chair Gary Gensler said: “When celebrities endorse investment opportunities, including crypto asset securities, investors should be careful to research if the investments are right for them, and they should know why celebrities are making those endorsements.“
Three Year Promotion Ban
As part of his settlement agreement with the financial regulator, Pierce agreed not to promote any crypto asset securities for three years