- The charges against him center on his promotion of EthereumMax (EMAX) coins.
- After obtaining $244,000 worth of EMAX tokens, Paul Pierce advertised them on Twitter.
On Friday, the US Securities and Exchange Commission (SEC) charged ex-NBA star Paul Pierce with crypto breaches. The charges against him center on his promotion of EthereumMax (EMAX) coins on social media without providing the necessary context. The SEC said the ex-player made deceptive claims in a promotion for EMAX. Penalties, disgorgement, and interest totaled $1.409 million, which Pierce paid to resolve the allegations.
The main accusation is that after obtaining $244,000 worth of EMAX tokens, Paul Pierce advertised them on Twitter. According to the SEC’s statement, he failed to disclose to the public that he had been compensated in tokens for his promotion. SEC Chair Gary Gensler called the charges a message to celebrities. Saying that influencers should be transparent about any remuneration they get for pushing crypto assets as “securities.”
Disclosing Financial Links Mandatory
As per authorities, one can’t just tell investors to buy security without disclosing their financial links to the company or individuals selling it. In addition, one can’t lie to them about their compensation for promoting the investment.
A week after charging Kraken with failing to register its crypto-staking program. The SEC has taken yet another action connected to cryptocurrencies. As part of its arrangement with the SEC. Kraken shut down its staking service and paid $30 million in disgorgement, prejudgment interest, and civil penalties.
Gary Gensler, head of the SEC, has expressed concern that crypto businesses’ bankruptcy-proof custody processes may not pass muster with the law. The bankruptcy of Celsius Network LLC, Voyager Digital Ltd., and FTX, he said, had already cost investment advisors money since the companies had mixed client funds with their own.