SEC chair issues warning to celebrities promoting crypto amid latest enforcement action


The United States Securities and Exchange Commission has announced a $1.4-million settlement with former NBA player Paul Pierce for allegedly promoting a token project on social media.

In a Feb. 17 announcement, the SEC said Pierce touted EthereumMax (EMAX) tokens through social media channels without disclosing he had received payment for the promotion and made “false and misleading statements” regarding the project. According to the SEC, promoters paid the former NBA star $244,000 worth of EMAX in addition to him posting messages allegedly showing misleading information about profits on Twitter.

How To Get Free Crypto  

The financial regulator has previously targeted celebrities promoting EthereumMax tokens. The SEC announced a $1.2-million settlement in October 2022 with Kim Kardashian for similar charges as those Pierce was facing — in that case, she failed to disclose a $250,000 payment to publish a story on her Instagram promoting EMAX tokens.

“This case is yet another reminder to celebrities: The law requires you to disclose to the public from whom and how much you are getting paid to promote investment in securities, and you can’t lie to investors when you tout a security,” said SEC Chair Gary Gensler. “When celebrities endorse investment opportunities, including crypto asset securities, investors should be careful to research if the investments are right for them, and they should know why celebrities are making those endorsements.”

As part of the settlement, Pierce paid a $1.115-million penalty to the SEC and roughly $240,000 in disgorgement and agreed not to promote any crypto projects considered to be securities for three years. SEC Enforcement Director Gurbir Grewal added:

“Investors are entitled to know whether a promotor of a security is unbiased, and Mr. Pierce failed to disclose this information.”

Related: Breaking: Circle squashes rumors of planned SEC enforcement action

The move from the SEC was the latest in what many critics have called a “regulation by enforcement” approach to crypto projects the agency considered securities. On Feb. 9, the financial regulator announced that it had reached a settlement with Kraken, in which the crypto exchange agreed to stop offering staking services or programs to U.S. clients.

Coinbase Banner  

Go to Source
Author: Turner Wright

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.