SEC Puts Crypto-Friendly Celebrities on Notice, Fines NBA Legend Paul Pierce $1,400,000 for Plugging EthereumMax

The U.S. Securities and Exchange Commission (SEC) monitors celebrities who endorse cryptocurrency projects.

regulator announced Retired NBA legend Paul Pierce on Friday accused him of plugging in Ethereum Max (EMAX), a project aimed at creating a scalable decentralized finance (DeFi) platform on the Ethereum (ETH) network. prosecuted.

The SEC says Pierce promoted the EMAX token without disclosing the payments he received for the promotion and made “false and misleading promotional statements” about the highly volatile crypto asset. Pierce has agreed to settle the charges and pay a $1.41 million fine, according to Reuters.

SEC Chairman Gary Gensler took the opportunity to warn celebrities that they could be charged shillings for cryptocurrency projects if they do not disclose their advertising spending.

This case is another cautionary note to celebrities.The law requires the public to disclose who and how much they are getting paid to promote their investment in securities, and they are not allowed to advertise their securities. When a celebrity endorses an investment opportunity involving cryptocurrency securities, investors should carefully research whether the investment is right for them and why the celebrity is willing to invest in them. I need to know if I’m endorsing

In late 2022, a US judge filed a class action lawsuit alleging that a number of celebrities, including Pierce, fraudulently promoted EthereumMax. However, the judge said in the case record that the defendants could amend the complaint and reopen the case.

Value of EMAX At $0.000000001015 at the time of writing, it is down more than 99% from its all-time high.

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