• Paul Pierce has been charged by the Securities and Exchange Commission (SEC) for promoting a crypto security, EthereumMax.
• He was paid a total sum of more than $244,000 in EMAX tokens to promote the token.
• As part of his settlement with the SEC, he will pay a penalty of $1.1 million and be barred from promoting any crypto assets for the next three years.
Paul Pierce Settles with SEC Over Charges
Crypto regulations continue to deepen as regulators take action against the crypto industry. NBA Hall of Fame player Paul Pierce recently settled with the Securities and Exchange Commission (SEC) over charges of unlawfully touting digital asset EthereumMax, which is considered by the regulator to be a “crypto security”.
In 2021, Pierce promoted EthereumMax tokens without disclosing that he was doing so for profit. Reportedly, he was paid more than $244,000 in EMAX tokens for his services.
As part of his settlement with the SEC, he is required to pay a penalty of $1.1 million and abstain from promoting any crypto assets for three years. Additionally, it was found that on social media Pierce had misled investors regarding his holding position by posting screenshots indicating higher amounts than what he really owned before dumping all those tokens on the market.
Other Celebrities Involved
Pierce is not alone in this case; other celebrities such as Kim Kardashian and Floyd Mayweather Jr were also involved in promoting the EMAX project without disclosing their involvement or payment structure publicly.
The EthereumMax Lesson
The SEC Chairman Gary Gensler noted: “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.”