• Paul Pierce settles with the Securities and Exchange Commission (SEC) for promoting digital asset EthereumMax.
• The SEC considers EthereumMax a ‘crypto security’ and charged Pierce with unlawful touting.
• As part of his settlement, Pierce will pay $1.1 million in penalties, while other celebrities have also been charged with similar offenses.
Paul Pierce Settles With SEC
The NBA Hall of Fame player Paul Pierce has settled with the Securities and Exchange Commission (SEC) over charges of unlawfully touting digital asset EthereumMax, which the regulator considers a ‘crypto security.’ This comes after the SEC continues to crack down on the crypto industry.
In 2021, NBA legend Pierce promoted EthereumMax tokens for a profit without disclosing it to followers on social media platforms. Reportedly, he was paid more than $244,000 in EMAX tokens for this promotion.
As part of his settlement with the SEC, the NBA player will pay a sum of $1.1 million as a penalty for the offense committed and discharge “approximately $240,000,” according to the SEC. Aside from the fine, Pierce’s punishment includes abstaining from promoting any crypto assets for three years.
SEC Chairman Gary Gensler noted: 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.”
Other Celebrities Involved
Pierce hasn’t been the only celebrity involved in this legal case; stars such as Kim Kardashian and sports legend Floyd Mayweather Jr were also part of it.