- Former NBA star Paul Pierce has been fined $1.4 million by the SEC for promoting EthereumMax (EMAX) cryptocurrency without disclosing that he was paid to do so.
- As part of the settlement agreement, he did not admit to any wrongdoing and agreed not to promote any crypto assets for the next three years.
- SEC Chair Gary Gensler hoped the case would remind celebrities to reveal who paid them to promote investments in securities and how much they received.
Paul Pierce, a former NBA star, has been fined $1.4 million for promoting EthereumMax (EMAX) cryptocurrency with his Twitter account. Pierce was paid $244,000 to advertise the token but he didn’t reveal this when he posted about it on his account, according to a filing by the SEC.
.@espn I don’t need you. I got @ethereum_max I made more money with this crypto in the past month then I did with y’all in a year. TRUTH shall set u Free 🤪🤪 my own Bosshttps://t.co/3irnuWYve3 check it out for yourself
— Paul Pierce (@paulpierce34) May 26, 2021
In addition, he tweeted a screenshot of an account that had EMAX holdings and had made huge profit as his own. Meanwhile, the image was not of the former sportsman’s account.
–Africa’s Payment Platform Chipper Cash Lays Off Nearly 100 Employees
–Bitcoin Price Surges To Highest Point In 2023
–Meta Rolls Out Paid Verification Service For Facebook & Instagram Users.
However, as part of the settlement agreement, he did not admit to any wrongdoing. He also agreed that he would not promote any crypto assets for the next three years.
SEC Chair Gary Gensler said that he hoped the case would remind celebrities again that there is a law that requires them to reveal who paid them to promote investments in securities and how much they received.
This token is the same one that Kim Kardashian and Floyd Mayweather Jr promoted and landed them in trouble with the law.
“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,” Gensler further said.
For your daily dose of tech, lifestyle, and trending content, make sure to follow Plat4om on Twitter @Plat4omLive, on Instagram @Plat4om, on LinkedIn at Plat4om, and on Facebook at Plat4om. You can also email us at firstname.lastname@example.org and join our channel on Telegram at Plat4om. Finally, don’t forget to subscribe to OUR YOUTUBE CHANNEL.