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(Bloomberg) — Nationwide Basketball Affiliation legend Paul Pierce has agreed to pay $1.4 million to settle US Securities and Trade Fee allegations that he touted a crypto token with out disclosing that he was paid for the promotions.
Pierce, who was nicknamed “The Fact” throughout his profession, additionally made false and deceptive statements concerning the token, in accordance with the SEC. Pierce didn’t admit or deny the company’s findings, the company stated. A lawyer for Pierce didn’t instantly reply to a request for remark.
This isn’t the primary time a celeb has run afoul of the SEC for touting the EMAX token. Kim Kardashian agreed to pay $1.3 million in October to settle allegations about her promotion. Based on the SEC, Pierce didn’t disclose that he was paid greater than $244,000 to advertise on Twitter the EMAX token, which is obtainable by EthereumMax.
Learn Extra: Kim Kardashian to Pay $1.3 Million to SEC for Crypto Touting
“This case is yet one more reminder to celebrities: The regulation requires you to speak in confidence to the general public from whom and the way a lot you’re getting paid to advertise funding in securities, and you may’t mislead traders once you tout a safety,” SEC Chair Gary Gensler stated in a press release.
The longtime Boston Celtic and frequent NBA All-Star additionally agreed to not promote any cryptoasset securities for 3 years as a part of the settlement, the SEC stated.
Along with not disclosing that he was paid, Pierce ran afoul of the SEC by claiming that he had made more cash with the EMAX token in Could 2021 than he had in a 12 months at ESPN. The SEC alleged in its grievance that the assertion was “materially deceptive.”
Wall Avenue’s most important regulator has often warned that celebrities touting crypto tokens that it deems securities must clarify to traders in the event that they’re paid for the backing. In 2018, the SEC fined boxer Floyd Mayweather for failing to reveal funds they obtained for hyping preliminary coin choices.
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