NBA Hall-of-Famer Pierce to pay $1.4 mln over crypto promotion, SEC says

WASHINGTON, Feb 17 (Reuters) – Former professional US basketball star Paul Pierce has agreed to pay greater than $1.4 million to settle expenses he illegally promoted digital belongings, Wall Avenue’s prime regulator mentioned Friday.

The U.S. Securities and Change Fee mentioned Pierce promoted crypto tokens offered by EthereumMax on social media with out disclosing he was paid to take action, and made deceptive statements in regards to the product.

The settlement with the previous Boston Celtic and NBA Corridor-of-Famer marks the newest transfer by the SEC to crack down on superstar endorsements of crypto merchandise.

Pierce settled the charges with out admitting or denying them, agreeing to pay $1.1 million in fines and one other $240,000 representing the disgorgement of ill-gotten positive aspects plus curiosity, in accordance with the SEC.

“This case is yet one more reminder to celebrities: The regulation requires you to speak in confidence to the general public from whom and the way a lot you’re getting paid to advertise funding in securities, and you’ll’t mislead traders whenever you tout a safety,” SEC Chairman Gary Gensler mentioned in an announcement.

A consultant for Pierce didn’t instantly reply to a request for remark.

Final yr, the SEC penalized a number of celebrities, together with actuality TV star Kim Kardashian and former boxer Floyd Mayweather Jr for his or her roles in improperly selling crypto tokens by means of social media.

Below Gensler, the SEC has taken a tough line towards the nascent cryptocurrency trade, multiplying enforcement actions towards buying and selling platforms accused of working exterior investor safety legal guidelines. The company this week proposed new guidelines governing custody of belongings below administration by hedge funds and others which critics mentioned would hinder funding in digital currencies.

Reporting by Pete Schroeder, Modifying by Franklin Paul and David Gregorio

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