“The Truth” about the crypto industry has cost one Boston Celtics legend a part of his retirement fortune.
The U.S. Securities and Exchange Commission announced on Friday that Paul Pierce has agreed to pay a $1.1 million fine and approximately $240,000 in disgorgement and prejudgment interest after being charged with misleading the public about his involvement with EthereumMAX while promoting the company's crypto tokens on social media.
“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 Chair Gary Gensler said in a statement, per Anushree Dave of Market Watch.
The SEC alleges that Pierce promoted eMAX tokens on social media without disclosing that he was being paid by the company. The agency also accused the 2008 NBA Finals MVP of exaggerating his personal holdings of eMAX tokens in a screenshot of his supposed assets posted to Twitter.
Pierce paid the fine without admitting or denying the SEC's findings. He isn't the first celebrity to be fined by the agency for illicit promotions of EthereumMAX, either. Kim Kardashian paid a $1.3 million fine in October for failing to disclose she earned $240,000 from the company for an Instagram post promoting her holdings in eMAX tokens.
“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,” Gensler said.
Paul Pierce, a 10-time All-Star with the Celtics, retired in 2017. “The Truth's” No. 34 jersey was raised to the TD Garden rafters a year later, and Pierce was inducted to the Naismith Memorial Basketball Hall of Fame in 2021.
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