SEC accuses NBA Hall of Famer Paul Pierce for promoting Ethereum Max
SEC accuses NBA Hall of Famer Paul Pierce for promoting Ethereum Max
On February 17, the Securities and Exchange Commission (SEC) accused the NBA Hall of Famer Paul Pierce to have illegally advertised the Emax-token on its social media accounts. The EMAX token was offered and sold by Ethereummax.
According to the complaint, Pierce has agreed to pay a punishment of $ 1,15,000 plus about $ 240,000 in degorable and prejudice interest without admitting or denying guilt in order to avoid larger sanctions from the supervisory authorities. He is also forbidden to apply for three years of crypto-asset securities.
Today we have announced charges against the former NBA player Paul Pierce because he advertised on social media for EMAX token without disclosing the payment he received for the doctorate, and because he made false and misleading advertising statements about the same crypto asset.
- US Securities and Exchange Commission (@Secgov) 17. February 2023
showfake investments to promote EMAX?
The SEC claims that Pierce had supported the purchase of the EMAX token fraudulently without publicly announcing that Ethereummax had paid him over $ 244,000 in EMAX for advertising.
The accused even posted screenshots of a fake account that showed significant profits and stocks with EMAX. However, everything was fake because "his own personal stocks were actually much lower than those on the screenshot".
Gary Gensler, Chairman of the SEC, explained that this lawsuit reminds all influencers and celebrities that the authorities are vigilant and willing to act against those who use their fame to promote the purchase of not registered securities.
"This case is another reminder for celebrities: The law requires that they disclose the public of whom and how much they are paid for to promote investments in securities, and they are not allowed to lie to investors if they advertise for a securities."
In addition, he asked the investors to do their own research before believing in the "investment opportunities" that prominently promote celebrities because they often promote investments that can lead to millions of losses.
Gurbir S. Grewal, director of the SEC department for enforcement, said that the US laws are clear in relation to the promotion of crypto asset securities. Therefore, celebrities and everyone else must report the type, source and compensation that they have received to promote cryptocurrencies.
The SEC has an eye on celebrities who campaigned for Emax
from Model and Influencer Kim Kardashian to the famous boxer Floyd Mayweather Jr. Celebrities were examined by the SEC because they had recruited for non-registered crypto-asset value papers.
At the beginning of October 2022, Kardashian agreed to pay a fine of $ 1.26 million for the use of their social media to promote investments in Ethereummax, without revealing that she had received a payment of $ 250,000. Paul Pierce followed the same mode operandi.
Mayweather used the “Love” logo to advertise several crypto-assets, including Emax, and did not announce that he was paid $ 200,000.
The SEC is increasingly acting against those who advertise for securities (also in the form of crypto-assets) without dismissing their remuneration. Pierce and others are proof that even celebrities cannot act outside of the law and that the supervisory authorities will act if necessary to protect investors from fraudulent practices.
.