Paul Pierce, NBA star, to pay $1.4M in penalties for promoting EthereumMax
The U.S. Securities and Exchange Commission Charged Paul Pierce, a former NBA player was charged with violating antifraud and anti-touting laws by promoting EthereumMax cryptocurrency. Pierce agreed to pay $1.409 million in fines and settle the charges.
According to a Friday report, the SEC charged NFT’s NFT star with promoting EMAX tokens, cryptocurrencies, sold by EthereumMax on social media without disclosing his payment and making misleading statements about the token. Press release.
According to the commission, Pierce was given more than $244,000 in EMAX tokens for promoting the project on Twitter. Pierce sent a screenshot of a Twitter account showing large profits and holdings on one occasion. He did not disclose that it was his personal holdings.
According to the commission, the NBA star paid $1.4 million in penalties and disgorgement. Pierce also agreed to refrain from promoting crypto assets for three consecutive years. Gary Gensler, Chair of the SEC, stated:
“This case is another reminder for celebrities: The law requires that you disclose to the public who and how much you receive compensation to promote securities investment. Investors can’t believe you will tout a security.
Pierce, a California NBA Hall of Famer who played 19 seasons with the Boston Celtics, is now retired. After posting a video of him at a party with strippers, he was fired by ESPN in April 2021.
EthereumMax was not to be confused by Ethereum. It was a speculative, digital token that was created in May 2021, but it is not to be confused. A number of celebrities, including Floyd Mayweather Jr. and Kim Kardashian, promoted the project.
Kardashian was also accused by the SEC of promoting the EMAX cryptocurrency asset on her Instagram account in October 2017. The reality TV star agreed to $1.26 million to settle charges related to the promotion of the token.
Since its launch in 2021, EthereumMax’s EMAX token is experiencing a sharp decline. The token is down more than 99% from its peak.
SEC intensifies efforts to rein in crypto
The SEC is now more aggressive in its enforcement of crypto-related laws. The SEC charged Terraform, CEO of stablecoins, and Do Kwon with orchestrating a multibillion dollar cryptocurrency fraud.
Last week, the commission reached an arrangement with Kraken crypto exchange to cease offering staking programs or services to clients in the country. It also agreed to pay $30 million to resolve allegations that the commission failed to “register the offer and sale their cryptoasset-staking-as a service program,” which was considered securities.
The SEC also threatened Paxos (a US-registered company that issues Binance’s stablecoin Binance USD, or BUSD), with legal action because it has issued BUSD tokens. BUSD was argued by the agency to be an unregistered security.