Paul Pierce agreed to pay $1.4 million to settle SEC cryptocurrency charges

The Securities and Exchange Commission (SEC) charged former Celtics player Paul Pierce with committing multiple violations of federal securities law in connection with his promotion of cryptocurrency. Pierce has agreed to settle, the commission announced on Fridayand pay a total of $1,409 million.

Specifically, the SEC found that Pierce promoted crypto asset securities (known as EMAX tokens) of EthereumMax on social media despite not publicly disclosing that he received more than $244,000 in EMAX tokens to help promote the product on Twitter.

“The SEC order also finds that Pierce tweeted misleading statements related to EMAX, including tweeting an account screenshot showing large holdings and gains without disclosing that his own personal holdings were, in fact, much lower than those on the screenshot,” the commission said in the statement announcing the charges. "In addition, one of Pierce's tweets contained a link to the EthereumMax website, which provided instructions for potential investors to purchase EMAX tokens."

Officially, the SEC found that Pierce violated the anti-advertising and anti-fraud provisions of the federal securities laws. The former Celtic neither admitted nor denied the findings, according to the commission, simply agreeing to pay the $1,115,000 fine, as well as $240,000 in repayment interest and pre-judgment interest.

As part of the agreement, Pierce will not promote the cryptocurrency for three years.

“This case is yet another reminder to celebrities: You are required by law to disclose to the public who and how much you are paid to promote investing in securities, and you cannot lie to investors when promoting a security,” SEC Chairman Gary Gensler said in the notice. "When celebrities endorse investment opportunities, including crypto-asset stocks, investors should be careful to research whether the investments are right for them, and should know why celebrities are endorsing those securities."