The Securities and Change Fee mentioned Friday that it has fined NBA Corridor of Famer Paul Pierce, who received a championship with the Boston Celtics, for touting EMAX tokens, crypto asset securities supplied and offered 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 costs and pay $1.409 million in penalties, disgorgement and curiosity, the SEC mentioned.
In keeping with the SEC’s order, Pierce did not disclose that he was paid greater than $244,000 price of EMAX tokens to advertise the tokens on Twitter.
The SEC’s order additionally finds that between Could 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 supplied and offered.
Pierce “tweeted deceptive statements associated to EMAX, together with tweeting a screenshot of an account displaying massive holdings and earnings with out disclosing that his personal private holdings have been in truth a lot decrease than these within the screenshot,” the SEC mentioned.
As well as, one in every of Pierce’s tweets contained a hyperlink to the EthereumMax web site, which offered directions for potential buyers to buy EMAX tokens, the SEC defined.
“This case is one more reminder to celebrities: The regulation requires you to open up to the general public from whom and the way a lot you’re getting paid to advertise funding in securities, and you’ll’t mislead buyers whenever you tout a safety,” mentioned SEC Chairman Gary Gensler in an announcement.