Former NBA player Paul Pierce is charged by the SEC for allegedly touting cryptocurrency

According to BARRONS report, the Securities and Exchange Commission (SEC) charged former NBA player Paul Pierce, alleging he touted crypto tokens without disclosing that he was paid to do so. SEC stated that Pierce did not admit or deny the charges but agreed to pay a $1,115,000 penalty and $240,000 in disgorgement and interest.

Pierce marketed EthereumMax's “EMAX” tokens on social media without disclosing that he had been given more than $244,000 worth of the tokens. In addition, he posted screenshots of an account that showed holdings that were much larger than what he actually owned, according to the agency.

An attorney for Pierce, who spent most of his career with the Boston Celtics before retiring in 2017, didnt immediately respond to a request for comment.

Paul Pierce has been charged over cryptocurrency promotion on social media.

The fine is the latest move by the SEC to crack down on celebrities who promoted crypto sales, often without disclosing that they were paid, or how much they were paid by the projects‘ creators. Businesswoman and media personality Kim Kardashian in October agreed to pay $1.26 million after the SEC said she didn’t disclose she was paid $250,000 to promote EMAX tokens on her Instagram account.

The case is the latest example of recent moves by the SEC to crack down on the crypto market more generally. The agency says the world of cryptocurrencies is chock full of tokens that should be registered as securities and fall under its jurisdiction ,according to report.

On Friday, the SEC announced that the former NBA star had been charged with failing to disclose that Ethereum max paid $244,000 in EMAX tokens in exchange for Posting them on social media. In addition, the SEC said Mr Pearce made “misleading statements” about EMAX on Twitter.

According to the SEC, Pearce's actions violated the anti-merchandising and anti-fraud provisions of federal securities laws. Pearce has now agreed to pay approximately $1.4 million to resolve the charges, although the settlement does not mean that Pearce has admitted or denied the SEC's decision on crypto promotions. He was also banned from promoting cryptocurrencies for three years.

“When celebrities endorse investment opportunities, including crypto-asset securities, investors should be careful to research if the investments are right for them, and they should know why celebrities are making those endorsements,” Gary Gensler, the chair of the SEC, said on Friday.