Warning to Crypto Sharers from SEC Chairman: Don’t Do These!

NBA veteran Paul Peirce is facing a $1.4 million settlement with the US Securities and Exchange Commission due to the promotion of a token project. Thanks to this development, SEC chairman Gary Gensler said: crypto- sent a strong warning to celebrities who supported the money.

Drawing on the long list of high-profile names associated with FTX, the regulator turned its attention to celebrities who support digital assets. It specifically urges investors to understand “why celebrities make these endorsements.”

SEC Targets Famous Crypto Approvals

FTXwas a crypto exchange supported by many famous names throughout 2022. Super Bowl ads featuring Tom Brady, Giselle Bundchen and Larry David have put the stock market on par with some of the biggest brands on the planet.

As it is known, by November, the company went bankrupt and its founder was arrested for fraud. This has led many to turn their attention to the high-profile names that support the platform. Now, SEC Chairman Gary Gensler, in his deal with an NBA star, has sent a strong warning to celebrities who support crypto.

Paul Pierce reached a $1.4 million settlement with the SEC on February 17. The accusations against the NBA player were due to his promotion of EthereumMax tokens. Especially not disclosing that payment has been made for the promotion. Similarly, celebrities like Kim Kardashian are facing similar SEC accusations.

“This case is another reminder to celebrities,” Gensler said. The law requires you to publicly disclose who and how much you are paid to encourage investment in securities. “You can’t lie to investors when promoting a security,” he said.

Gensler also added, “When celebrities support investment opportunities, including crypto-asset securities, investors should be careful to research whether the investments are right for them. However, celebrities should know why they do this support.”


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