• NBA Hall-of-Famer Paul Pierce has been charged by the SEC for promoting the Ethereum Max token on his social media accounts.
• He agreed to pay a penalty of $1,115,000 plus approximately $240,000 in disgorgement and prejudgment interest.
• The SEC alleges that Pierce fraudulently promoted the purchase of the EMAX token without publicly disclosing that EthereumMax paid him over $244,000 in EMAX for promoting it.
SEC Charges NBA Hall of Famer Paul Pierce
NBA Hall-of-Famer Paul Pierce has been charged by the Securities and Exchange Commission (SEC) for being involved in the promotion of Ethereum Max. On February 17, he was charged with illegally promoting the EMAX token on his social media accounts.
Agreed to Pay Penalty of Over $1 Million
Pierce has agreed to pay a penalty of $1,115,000, plus approximately $240,000 in disgorgement and prejudgment interest, without admitting or denying guilt. To avoid greater sanctions from regulators he is also prohibited from promoting any crypto asset securities for three years.
Promoted Fake Investments to Promote EMAX?
The SEC alleges that Pierce fraudulently promoted the purchase of the EMAX token without publicly disclosing that EthereumMax paid him over $244,000 in EMAX for promoting it. He even posted screenshots of a fake account that showed significant profits and holdings using EMAX but his own personal holdings were much lower than those in the screenshot.
Penalty For Fraudulent Promotion
For his fraudulent promotional activities regarding EthereumMax’s offering and sale of its digital asset security tokens known as “EthereumMax” or “EMAX” tokens — Pierce faces a penalty payment to SEC amounting to more than one million dollars ($1 M). Additionally he is barred from engaging in any kind of promotion related activities associated with digital asset securities for three years period starting from February 17th 2023 onwards.
The case against Paul Pierce serves as an example warning others not to engage with fraudulent activities such as illegal promotions or misuse information about investments related to crypto assets securities . It’s important for investors and promoters alike to ensure they are aware about all legal requirements before entering into any financial transaction involving digital assets securities.