• Paul Pierce, former NBA star, was charged by the SEC with crypto breaches for promoting EthereumMax (EMAX) coins on social media.
• He failed to disclose that he had been compensated in tokens for his promotion and received a $1.4M fine from the SEC as a result.
• The SEC’s action sends a message to celebrities that they must be transparent about any remuneration they receive for pushing crypto assets as “securities”.
Former NBA Star Paul Pierce Fined $1.4M by SEC
The US Securities and Exchange Commission (SEC) has charged ex-NBA star Paul Pierce with crypto breaches over his promotion of EthereumMax (EMAX) coins without providing the necessary context. Pierce was fined $1.409 million to resolve the allegations after it was discovered he had obtained $244,000 worth of EMAX tokens and advertised them on Twitter without disclosing he had been compensated in tokens for his promotion.
SEC Charges Send Message to Celebrities
The main accusation against Paul Pierce is that he failed to disclose financial information to the public regarding his compensation for promoting EMAX tokens as securities. The charges serve as a warning to other celebrities who may be involved in promoting cryptocurrencies – transparency about any remuneration received is mandatory when advertising investments or securities online.
Kraken Shut Down Staking Service After SEC Charge
A week prior, Kraken was also charged by the SEC with failing to register its crypto-staking program and subsequently shut down its service, paying $30 million in fines and penalties as part of its arrangement with the SEC. This shows how seriously authorities are taking cryptocurrency-related activities – investors must make sure they understand all potential risks before investing in digital assets.
SEC Chair Gary Gensler Expresses Concerns Over Crypto Businesses
SEC Chair Gary Gensler expressed concern that crypto businesses‘ bankruptcy-proof custody processes may not pass muster with regulatory law following recent bankruptcies such as Celsius Network LLC, Voyager Digital Ltd., and FTX which cost investor advisors money due to their mixing of client funds with their own funds.
Celebrities need to be transparent when advertising investments or securities related to cryptocurrencies online so investors can make informed decisions about their investments and avoid risks associated with digital asset investments such as those experienced by customers of Celsius Network LLC, Voyager Digital Ltd., and FTX recently reported by the SEC chair Gary Gensler .