American Securities and Exchange Commission (SEC) President Gary Gensler spoke after the agency sanctioned a former NBA player. Gensler once again warned celebrities about crypto:
“With this case, I remind celebrities once again: By law, when you advertise a security, you must disclose how much money you received from whom. Celebrities should warn investors that this product is risky, especially when advertising cryptocurrencies. Most investors don’t even know what they’re buying.”
Big Punishment for Former Basketball Player!
The SEC announced today that it has sanctioned former NBA player Paul Pierce. Pierce agreed to pay a $1.4 million penalty to the institution, with the settlement decision taken without a lawsuit.
Today we announced charges against former NBA player Paul Pierce for touting EMAX tokens on social media without disclosing the payment he received for the promotion and for making false and misleading promotional statements about the same crypto asset.
— US Securities and Exchange Commission (@SECGov) February 17, 2023
The Securities and Exchange Commission announced on his Twitter account that the famous basketball player did not disclose the payment he received for the advertisement to the investors.
“Paul Pierce advertised the cryptocurrency called EthereumMax (EMAX) on his social media account. The former basketball star made false and misleading posts about EMAX, aside from not revealing the details.”
American government organizations have been hovering over cryptocurrencies in recent days. SEC, crypto exchange last week Kraken scrutinized. Kraken, on the other hand, announced that it has suspended its staking service.
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