Former Boston Celtics Ordered to Pay $1.4M to Securities and Exchange Commission for Touting Crypto Securities

Former Boston Celtics Paul Pierce has agreed to pay the Securities and Exchange Commission (SEC) $1.4 million after he allegedly touted crypto securities.

According to CNBC, Pierce promoted EthereumMax (EMAX) tokens, but did not disclose that he was paid by EMAX to do so. CNBC also reported that Pierce was paid more than $244,000 in EMAX tokens. It is also alleged that Pierce mislead the public by sharing screenshots of his EMAX profits.

“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 Chairman Gary Gensler said in a statement.

Back in 2021, after Pierce was fired from ESPN for appearing in live social media video with strippers, Pierce wrote on Twitter: ″@espn I don’t need you,” Pierce wrote in a May 2021 tweet. “I got @ethereum_max I made more money with this crypto in the past month then [sic] I did with y’all in a year.”

In 2022, Kim Kardashian also settled with the SEC for $1.2 million after it was alleged that she also touted EMAX.

“This is not financial advice but sharing what my friends told me about the ethereum max token!” Kardishan’s wrote. She also added hashtags #ad, #emax, and #disrupthistory.

Federal lawsuits also named Floyd Mayweather Jr. and other EMAX boosters, which were dismissed in December. A judge said that the plaintiffs’ allegations didn’t meet the standards required of fraud cases.

CNBC also reported that the SEC has been aggressive in enforcing taunting crypto.

Earlier this week, the SEC proposed changes to federal custody regulation, which could greatly impact the way cryptocurrency exchanges are able to custody certain assets, CNBC reported.

Pierce has been barred from promoting any crypto asset securities for three years, according to CNBC.