NBA Hall Of Famer Paul Pierce Will Pay The SEC $1.4M For EMAX Campaign That Was Not Disclosed
Key Points:
- Paul “The Truth” Pierce, an NBA Hall of Famer, agreed to pay $1.4 million to resolve SEC allegations relating to a cryptocurrency he advocated on Twitter.
- Pierce allegedly reportedly shared a false screenshot of an account showing significantly greater EMAX holdings and profits than his actual account.
- Kim Kardashian’s $1.26 million settlement in October for using the same money serves as a parallel to Pierce’s case. In the past year, Pierce and Kardashian were also accused of participating in the fraud and were sued.
Paul “The Truth” Pierce, an NBA Hall of Famer, agreed to pay $1.4 million to resolve SEC allegations relating to a cryptocurrency he advocated on Twitter.
Pierce was accused by the SEC of promoting EthereumMax (EMAX) in a fraudulent and misleading manner and failing to disclose the $244,000 token payment he got in exchange for his social media promotion.
Pierce allegedly reportedly shared a false screenshot of an account showing significantly greater EMAX holdings and profits than his actual account. Pierce also tweeted a link to the website for the currency, which contained information on how to buy EMAX tokens. Pierce was found to have broken the federal securities laws’ anti-touting and anti-fraud sections.
As part of the settlement, the retired NBA icon and former ESPN studio analyst didn’t confirm or refute the SEC’s allegations. He did, however, agree to forego promoting cryptocurrency for three years. Kim Kardashian’s $1.26 million settlement in October for using the same money serves as a parallel to Pierce’s case. In the past year, Pierce and Kardashian were also accused of participating in the fraud and were sued.
“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,” said SEC Chair Gary Gensler in a statement today. “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.”
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