The Securities and Change Fee stated Friday that it has fined NBA Corridor of Famer Paul Pierce, who gained a championship with the Boston Celtics, for touting EMAX tokens, crypto asset securities provided and bought by EthereumMax, on social media with out disclosing the cost he acquired.
The SEC additionally charged Pierce with making false and deceptive promotional statements about the identical crypto asset.
Pierce agreed to settle the fees and pay $1.409 million in penalties, disgorgement and curiosity, the SEC stated.
In response to the SEC’s order, Pierce didn’t disclose that he was paid greater than $244,000 value of EMAX tokens to advertise the tokens on Twitter.
The SEC’s order additionally finds that between Might 26, 2021, and June 5, 2021, Pierce — a former skilled basketball participant and sports activities analyst — touted on Twitter a crypto asset safety that was being provided and bought.
Pierce “tweeted deceptive statements associated to EMAX, together with tweeting a screenshot of an account displaying giant holdings and earnings with out disclosing that his personal private holdings had been actually a lot decrease than these within the screenshot,” the SEC stated.
As well as, considered one of Pierce’s tweets contained a hyperlink to the EthereumMax web site, which supplied directions for potential traders to buy EMAX tokens, the SEC defined.
“This case is yet one more reminder to celebrities: The legislation requires you to confide in the general public from whom and the way a lot you’re getting paid to advertise funding in securities, and you may’t deceive traders whenever you tout a safety,” stated SEC Chairman Gary Gensler in a press release.