Federal investigators stated on Friday that Paul Pierce has agreed to pay $1.4 million for promoting a cryptocurrency without revealing that he received compensation for doing so.
The 45-year-old Basketball Hall of Famer endorsed EthereumMax on Twitter in 2021, which led to a cease-and-desist order from the Securities and Exchange Commission.
However, Pierce failed to disclose that he was paid roughly $244,000 in EMAX tokens for this promotion, according to the SEC.
SEC Chair Gary Gensler warned celebrities that they must reveal the source and amount of payment they receive to promote securities to the public, and they cannot deceive investors while endorsing a security. This case serves as another reminder to them, he said.
Kim Kardashian faced a similar case and had to pay $1.26 million in October 2022.