Paul Pierce will pay $1.4 million to settle charges that he made misleading statements while promoting crypto. The former Boston Celtics star has agreed not to promote crypto assets for three years. Kim Kardashian last year paid $1.26 million to settle SEC charges related to EMAX. Loading Something is loading.
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Former NBA star Paul Pierce will pay $1.4 million in a settlement with the US securities regulator over charges he made misleading statements while promoting EMAX tokens, an amount that’s slightly more than Kim Kardashian paid to settle charges related to the same cryptocurrency last year.
The Securities and Exchange Commission said Friday that Pierce violated anti-touting and antifraud provisions of securities laws. It found that Pierce didn’t disclose that he was paid more than $244,000 worth of EMAX tokens to promote the digital asset on Twitter. The longtime Boston Celtics player also tweeted misleading EMAX statements, the agency said.
Pierce sent a Twitter message with a screenshot of an account showing large holdings and profits, but he didn’t disclose that his personal holdings were “much lower” than those displayed, the SEC said.
Pierce has agreed not to promote any crypto asset securities for three years as part of the settlement.
“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.
EMAX tokens, a crypto asset security sold by EthereumMax, were at the center of the SEC’s case against Kim Kardashian last year. The billionaire reality TV star and business owner in October agreed to pay $1.26 million to settle charges stemming from a June 2021 Instagram post about EMAX tokens.
The SEC said Friday that Pierce, without admitting or denying its findings, will pay a roughly $1.12 million penalty and about $240,000 in disgorgement and prejudgment interest.
Cryptocurrency investors last year filed a class-action claim against Pierce, Kim Kardashian, boxing champion Floyd Mayweather and others, alleging they mislead fans into buying EMAX tokens whose value later plunged. The lawsuit was reportedly dismissed, but a California judge left the door open for the plaintiffs to refile.