National Basketball Association legend Paul Pierce has agreed to pay $1.4 million to settle US Securities and Exchange Commission allegations that he touted a crypto token without disclosing that he was paid for the promotions.
(Bloomberg) — National Basketball Association legend Paul Pierce has agreed to pay $1.4 million to settle US Securities and Exchange Commission allegations that he touted a crypto token without disclosing that he was paid for the promotions.
Pierce, who was nicknamed “The Truth” during his career, also made false and misleading statements about the token, according to the SEC. Pierce didn’t admit or deny the agency’s findings, the agency said. A lawyer for Pierce did not immediately respond to a request for comment.
This isn’t the first time a celebrity 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. According to the SEC, Pierce failed to disclose that he was paid more than $244,000 to promote on Twitter the EMAX token, which is offered by EthereumMax.
“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,” SEC Chair Gary Gensler said in a statement.
The longtime Boston Celtic and frequent NBA All-Star also agreed to not promote any cryptoasset securities for three years as part of the settlement, the SEC said.
In addition to not disclosing that he was paid, Pierce ran afoul of the SEC by claiming that he had made more money with the EMAX token in May 2021 than he had in a year at ESPN. The SEC alleged in its complaint that the statement was “materially misleading.”
Wall Street’s main regulator has regularly warned that celebrities touting crypto tokens that it deems securities need to make clear to investors if they’re paid for the backing. In 2018, the SEC fined boxer Floyd Mayweather for failing to disclose payments they received for hyping initial coin offerings.
(Updates with attempt to reach Pierce lawyer in the second paragraph.)
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