The U.S. Securities and Exchange Commission announced it has settled with former Celtics forward Paul Pierce on charges for unlawfully promoting crypto assets. As a result, Pierce will pay more than $1.4 million for violating anti-touting and anti-fraud provisions.
“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 in a statement. “When celebrities endorse investment opportunities, including crypto asset securities, investors should be careful to research if the investments are right for them, and they should know why celebrities are making those endorsements.”
According to the SEC, Pierce’s charges were for promoting EthereumMax tokens on Twitter without disclosing that he received $244,000 in EMAX tokens for his services. He also tweeted a misleading screenshot that made it seem as if his personal account had more profits and holdings than it appeared.
