EthereumMax (EMAX) tokens filed compliant regarding NBA star Pual Pierce for publicizing EMAX tokens without divulging that he had been paid to do. Former Boston Celtics star Paul Pierce was ordered to pay more than $1.4 million in penalties after being charged with making false and misleading statements about crypto securities he was paid to promote, US regulators said Friday.
The Securities and Exchange Commission (SEC) said in a statement Pierce had been charged with touting EthereumMax (EMAX) tokens without disclosing that he had been paid to do so. The SEC statement said Pierce — nicknamed ‘The Truth’ during his playing days — was paid EMAX tokens worth $244,000 to promote the securities. The order also alleges Pierce tweeted misleading statements related to EMAX, including tweeting a screenshot of an account showing large holdings and profits without disclosing that his own personal holdings were much lower. Additionally, one of Pierce’s tweets contained a link to the EthereumMax website, which provided instructions for how potential investors could purchase EMAX tokens.
The 45-year-old also posted a screenshot of an account showing large holdings and profits of the securities when in fact his holdings were much lower than those shown.
In 2021 during crypto’s bull run, numerous celebrities increased the hype around digital assets by endorsing various crypto tokens on their social media platforms — which can have major reach.Other notable celebrity crypto endorsers have included Matt Damon, Tom Brady, Mike Tyson, Reese Witherspoon, Mark Cuban, DJ Khaled, Floyd Mayweather, Justin Bieber, and Madonna.
“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 chief Gary Gensler said.