SEC Puts Crypto-Friendly Celebrities On Notice, Fines NBA Legend Paul Pierce $1,400,000 For Plugging EthereumMax

The US Securities and Exchange Commission (SEC) has its radar locked on celebrities who support crypto projects.

The regulator announced on Friday that it was charging retired NBA legend Paul Pierce with plugging EthereumMax (EMAX), a project that aims to create a scalable decentralized finance (DeFi) platform on the Ethereum (ETH) network .

The SEC says Pierce touted EMAX tokens without disclosing the payment he received for the promotion and that he made “false and misleading promotional statements” about the highly volatile crypto-asset. Pierce agreed to settle the charges and pay a $1.41 million fine, according to the regulator.

SEC Chairman Gary Gensler took the opportunity to warn celebrities that they could be charged shillings for crypto projects if they don’t disclose promotional payments.

“This case is another reminder to celebrities: The law requires you to disclose to the public from whom and how much you are paid to promote investments in securities, and you cannot lie to investors when issuing a security. When celebrities endorse investment opportunities , including crypto-asset securities, investors should be careful to research whether the investments are right for them and they should know why celebrities are making these recommendations.”

In late 2022, a US judge threw out a class action lawsuit alleging that several celebrities, including Pierce, fraudulently promoted EthereumMax. However, the judge said in the case notes that the defendants could potentially amend their complaint and revive the lawsuit.

EMAX is worth $0.000000001015 at time of writing, down over 99% from all-time high.