NBA Hall of Famer Paul Pierce Charged by SEC for Touting EMAX Tokens

The U.S. Securities and Exchange Commission (SEC) has charged Basketball Hall of Famer Paul Pierce for touting EMAX tokens and making misleading comments astir unregistered crypto securities. The erstwhile Boston Celtics tiny guardant agreed to settee the charges and wage the SEC $1.409 million.

SEC Chair Gary Gensler Wants to Remind Celebrities of Disclosure Laws

The U.S.’s apical securities regulator has charged erstwhile Boston Celtics guardant Paul Pierce for unlawfully touting the cryptocurrency task called Ethereummax and the token EMAX. The Securities and Exchange Commission’s charges against Pierce travel an onslaught of enforcement actions by U.S. regulators against staking services, earn programs, stablecoins, and Do Kwon’s Terra blockchain ecosystem. According to the SEC complaint, Pierce “failed to disclose that helium was paid much than $244,000 worthy of EMAX tokens to beforehand the tokens connected Twitter.”

Pierce agreed to settee the charges with the SEC for $1.409 cardinal successful penalties, disgorgement, and interest. The ailment further asserts that successful 1 tweet, Pierce shared a screenshot of profits that were overmuch little than his idiosyncratic holdings. Another tweet shared the Ethereummax project’s website, which led to a portal to acquisition EMAX tokens. Pierce is not the lone personage whom the SEC has fined for unlawfully touting and misleading investors with the Ethereummax task and associated tokens.

In Oct. 2022, socialite Kim Kardashian was charged with unlawfully promoting the crypto plus EMAX. At the time, Kardashian besides settled with the SEC for $1.26 cardinal successful penalties. In a connection concerning Pierce’s charges, SEC Chair Gary Gensler insisted the lawsuit is “yet different reminder to celebrities.” Gensler continued, “The instrumentality requires you to disclose to the nationalist from whom and however overmuch you are getting paid to beforehand concern successful securities, and you can’t prevarication to investors erstwhile you tout a security.”

The regulator added:

When celebrities endorse concern opportunities, including crypto plus securities, investors should beryllium cautious to probe if the investments are close for them, and they should cognize wherefore celebrities are making those endorsements.

The SEC’s charges enactment that the Basketball Hall of Famer violated the anti-touting and antifraud provisions of national securities laws. The hoops prima settled with the SEC connected a non-admit oregon contradict ground and promised not to beforehand immoderate crypto assets for 3 years. The SEC further reminded investors to ticker Gensler’s video astir not making investments “solely connected the recommendations of a personage oregon influencer.”

What are your thoughts connected the SEC’s caller enforcement actions against celebrities promoting crypto assets and the alleged request for afloat disclosure to the public? Share your thoughts successful the comments conception below.

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