SEC Fines Former NBA Star Paul Pierce $1.4 Million For Promoting EthereumMax

Key Points:

• The SEC sued former NBA star Paul Pierce (Paul Pierce) for illegally endorsing the cryptocurrency project EthereumMax.
• The SEC said Pierce was paid $244,000 in EMAX tokens but did not disclose the payments during marketing.
• Pierce will pay $1,409 million in fines and restitution and not advertise any crypto asset securities for three years.

The United States Securities and Exchange Commission (SEC) sued former NBA star Paul Pierce (Paul Pierce) for failing to disclose the endorsement fee he received for promoting the EthereumMax (EMAX) token.

The NBA Hall of Famer has agreed not to “promote any crypto asset securities for three years,” the SEC statement said.

The SEC said Pierce was paid $244,000 in EMAX tokens to promote the project on Twitter, but he did not disclose the amount. In addition, he also suggests through the screenshots that he holds a large amount of EMAX tokens, although his holdings are much lower than the amount he shows.

In a statement, SEC Chair Gary Gensler said the settlement is “yet another reminder to celebrities” to disclose if they are being paid to promote investments.

“When celebrities endorse investment opportunities, including crypto-asset securities, investors should be careful to research if the investments are suitable for them. They should know why stars are making those endorsements.”

Gary Gensler said.

Pierce agreed to pay a $1.409 million fine while deciding to “not advertise any crypto-asset securities for three years.”

As previously reported, US reality TV star Kim Kardashian was also charged by the SEC for promoting EMAX and agreed to pay $1.26 million to settle.

Recently, the SEC has shown its desire to tighten crypto regulations, triggering a series of lawsuits. Kraken and Paxos are also in legal trouble with the SEC. Yesterday, Do Kwon and Terraform Labs were also sued by this regulator for misleading investors and issuing unregistered securities.

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