© Reuters. Former Boston Celtics player Paul Pierce carries the game ball before a game against the Toronto Raptors at TD Garden, Boston, Massachusetts, USA 10/22/2021 Brian Fluharty-USA TODAY Sports
By Douglas Gillison and Pete Schroeder
WASHINGTON (Reuters) – Former U.S. basketball star Paul Pierce has agreed to pay more than $1.4 million to settle allegations of illegally promoting crypto assets, the U.S. Securities and Exchange Commission (SEC) said in a statement. acronym in English) this Friday.
The regulator claimed that Pierce promoted digital tokens sold by EthereumMax on social media without disclosing that he was paid to do so and made misleading claims about the product.
The deal with the former Boston Celtic and NBA Hall of Famer marks the latest move by the SEC to crack down on celebrity endorsements of digital assets.
Pierce settled to dismiss the charges without admitting or denying them, agreeing to pay $1.1 million in fines and another $240,000 representing the return of ill-gotten gains plus interest, according to the SEC.
“This case is yet another reminder for celebrities: the law requires you to disclose to the public who and how much you are being paid to promote investment in securities, and you cannot lie to investors when you disclose a security,” SEC Chairman Gary Gensler said in a statement.
A rep for Pierce did not immediately respond to a request for comment.
Last year, the SEC penalized several celebrities, including reality TV star Kim Kardashian and former boxer Floyd Mayweather Jr, for improperly promoting digital assets through social media.
Under Gensler, the SEC has taken a hard line against the nascent cryptocurrency industry, stepping up enforcement actions against trading platforms accused of operating outside investor protection laws.