• Paul Pierce settled with the SEC over charges of unlawfully touting digital asset EthereumMax.
• He was paid more than $244,000 in EMAX tokens and will now pay a penalty of $1.1 million.
• Other celebrities such as Kim Kardashian and Floyd Mayweather Jr have also been part of similar cases.
Paul Pierce Settles with SEC Over EthereumMax Charges
Crypto regulations deepen as regulators continue to announce actions against the crypto industry. Today, the NBA Hall of Fame player Paul Pierce settled with the Securities and Exchange Commission (SEC) over charges of unlawful touting digital asset EthereumMax, which the regulator considers a ‘crypto security.’ This comes after the SEC continues to crack down on the crypto industry.
The Offense, The Judgement, And The EthereumMax Lesson
In 2021, NBA legend Pierce promoted EthereumMax tokens. According to the SEC, this is considered an offense as Pierece failed to disclose that he was promoting the token for a profit. Reportedly, pierce was paid a total sum of more than $244,000 in EMAX tokens. As part of his settlement with the SEC, he will pay a sum of $1.1 million as a penalty for the offense committed and discharge “approximately $240,000,” according to the SEC.
Pierce Is Just One Of Them
Pierce hasn’t been the only celebrity involved in legal cases over promotingEthereumMax project; stars such as Kim Kardashian and sports legend Floyd Mayweather Jr were also part of similar cases.
SEC Chairman Gary Gensler’s Reminder
SEC Chairman Gary Gensler noted: ″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.” Aside from paying fines ,Pierce’s punishment includes abstaining from promoting any crypto assets for three years .
Conclusion
These recent events show that regardless if you’re an NBA Hall-of-Famer or just an average investor: it pays off when it comes to crypto regulations—to know them well before investing your hard-earned money in any project related to cryptocurrencies!