The U.S. Securities and Exchange Commission has come down on former NBA star Paul Pierce for unlawfully shilling a little-known cryptocurrency.
Ex-Boston Celtics star Paul Pierce agreed to pay over $1.4 million in penalties to settle the charges, the SEC announced today.
According to the regulatory body, Pierce didn't disclose that he received over $244,000 in EthereumMax (EMAX) to promote the asset on Twitter.
"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," said SEC Chair Gary Gensler, who is currently launching a tough crackdown on the crypto industry.
EMAX is a token that runs on Ethereum, the blockchain behind the world’s second biggest cryptocurrency.
It doesn't appear to have any utility and is currently trading for $0.000000005150, a 392% 24-hour rise, according to CoinGecko. It is down 99% from its all-time high last year.
EMAX made headlines in 2021 when super rich celebrities Kim Kardashian and Floyd Mayweather promoted it. Investors who say they were duped sued the celebrities last year, though the lawsuit was eventually dismissed.
Kim Kardashian, however, agreed to pay the SEC $1.26 million in fines over her promotion of EthereumMax.
Pierce agreed to pay the $1.4 million fine but did not admit or deny the SEC's charges, which claim he violated the anti-touting and antifraud provisions of the federal securities laws.
He also agreed to not promote any digital asset securities for three years.
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