- The SEC’s crypto campaign doesn’t seem to be fading anytime soon.
- Former NBA star Paul Pierce has agreed to pay $1.4 million to settle charges brought against him by the Securities and Exchange Commission.
- The fee charged to Peirce is related to the promotion of EMAX tokens
The US Securities and Exchange Commission (SEC) announced on February 17 through a press release that it was suing former NBA star Paul Pierce for promoting cryptocurrency. This development follows a series of fines by the Securities and Exchange Commission (SEC) targeting crypto companies including a recent fine notice to Paxos for issuing a USD stablecoin.
in tweet The SEC said:
“Today we announced charges against former NBA player Paul Pierce for promoting EMAX tokens on social media without disclosing the payment he received for the promotion and making false and misleading promotional statements about the same crypto-asset.”
Paul Pierce agrees to settle the sentence
Earlier today, Paul Pierce agreed to pay $1.409 million, as announced by the Securities and Exchange Commission on Friday.
The charges against Pierce were for promoting EMAX tokens on Twitter. The SEC alleged that Pierce did not disclose what he was paid to promote the token and also went ahead with making false and misleading statements about the token.
It is reported that Pierce received $244,000 for promoting EMAX tokens. However, he posted a bank account with huge numbers that actually outnumber his bank account.
Celebrities are required by law to disclose their payments when promoting securities. SEC Chairman Gary Gensler has warned investors to exercise caution and do due diligence on investment opportunities including celebrity-endorsed crypto assets.