Former NBA champion Paul Pierce has agreed to pay more than $1.4 million in fines after unlawfully promoting the cryptocurrency EthereumMax (EMAX) to his Twitter audience. In a statement published Fridaythe U.S. Securities and Exchange Commission announced charges against the former Boston Celtics player – nicknamed “The Truth” – for making “false and misleading” statements about EMAX and failing to disclose that he has invested more than $244,000 in EMAX tokens had paid to promote the cryptocurrency among its social media followers.
In an example of his unauthorized activity, the commission alleges that Pierce tweeted a misleading screenshot of an account with significant EMAX funds and winnings without disclosing that the image did not represent his own personal property. Pierce agreed to pay the settlement “without admitting or denying the SEC’s findings,” according to the SEC committee, and has additionally agreed not to promote any crypto-assets for three years.
“This case is yet another celebrity reminder: the law requires you to disclose to the public who and how much you are being paid to promote investments in securities, and you cannot lie to investors when promoting a security,” he said. SEC Chairman Gary Gensler. “When celebrities endorse investment opportunities, including crypto assets, investors should be careful to research whether the investments are right for them, and they should know why celebrities are making those recommendations.”