Lucky EboseleNBA Hall of Famer Paul Pierce has agreed to an approximately $1.4 million settlement with the United States Securities and Exchange Commission (SEC) over charges related to his touting of EMAX, the crypto asset offered and sold by EthereumMax.
In 2017, the SEC issued a statement prohibiting individuals or celebrities from endorsing crypto assets without disclosing the nature, scope, and amount paid for the endorsement.
SEC Charges Pierce Over Crypto Touting
In a Friday press release, the SEC stated that Pierce endorsed EMAX tokens on one of his social media platforms without disclosing the payment he received for the endorsement.
As per the SEC findings, the former NBA star failed to disclose he was paid roughly $244,000 worth of EMAX tokens to promote the token on his Twitter page. The SEC also finds that Pierce made misleading statements about his EMAX holdings on Twitter.
According to the SEC, the celebrity published a tweet, including a screenshot of an account showing that he held large amounts of the token without disclosing that his own personal holdings were much lower than those in the screenshot.
“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,” SEC Chair Gary Gensler said.
SEC Alleges Federal Securities Law Violations
The SEC stated that Pierce violated the anti-touting and antifraud provisions of the federal securities laws for touting and making misleading promotional statements about EMAX.
Pierce admitted to the SEC claims and has agreed to pay a $1,115,000 penalty and approximately $240,000 in disgorgement and prejudgment interest. According to the SEC, the former NBA star also agreed not to endorse any crypto assets for three years.
Meanwhile, the NBA Hall of Famer is not the only celebrity to have settled the securities watchdog over the endorsement of EMAX tokens. In October, American media personality Kim Kardashian paid the SEC approximately $1.26 million to settle charges related to her endorsement of the token.
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