NBA Hall of Famer and Boston Celtics legend Paul Pierce will pay the Securities and Exchange Commission $1.4 million to settle charges that he was paid to promote a cryptocurrency and made false and misleading statements about the digital asset.
The SEC said Mr. Pierce did not disclose that he had been paid to promote EthereumMax securities. Authorities also accused Mr. Pierce of using false screenshots of his crypto assets, which were less than displayed.
Mr. Pierce’s promotions of the cryptocurrency included posts on Twitter that linked directly to the EthereumMax website, such as a message from May 2021 a few weeks after he was fired by ESPN.
“.@espn I don’t need you. I got @ethereum_max I made more money with this crypto in the past month then I did with y’all in a year. TRUTH shall set u Free my own Boss,” Mr. Pierce tweeted, referencing his moniker of being “The Truth.”
Another tweet reads: “People asking if they should jump on the @ethereum_max train I’m n for the long haul if u missed out on the 1st wave now is the time to jump on board,” before concluding with an expletive hashtag directed at ESPN and a rocket emoji, representing the supposed sky-high trajectory of the crypto asset.
“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,” said SEC Chairman Gary Gensler.
Mr. Pierce, who played in the NBA for 19 years, is primarily remembered for his 15 seasons playing on the Celtics, including his partnership in a “Big Three” with Kevin Garnett and Ray Allen that led to the team winning the 2008 NBA Finals against its cross-country nemesis, the Los Angeles Lakers.
In settling with the government, Mr. Pierce neither confirmed nor denied the SEC allegations. In addition to his payment, Mr. Pierce also agreed not to promote any crypto asset for three years. The settlement consists of a $1.15 million civil penalty, $244,116 in disgorgement equal to how much he was paid to promote crypto, and $15,449 in prejudgment interest.
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