A former NBA player named Paul Pierce has settled with the United States Securities and Exchange Commission in the amount of $1.4 million over allegations that he promoted a cryptocurrency token project on social media.

Pierce is accused of promoting EthereumMax (EMAX) tokens through social media platforms without disclosing that he had received any money for the promotion and making “false and misleading representations” about the project, according to an announcement published by the SEC on Feb. 17. . In addition to his Twitter posts that reportedly displayed incorrect earnings information, the former NBA player was allegedly paid a large $244,000 worth of EMAX by promoters, as stated by the SEC.

In the past, the financial markets regulator has taken issue with celebrities promoting EthereumMax tokens. Pierce was accused of failing to disclose a payment of $250,000 to post a story of hers on her Instagram promoting EMAX tokens. In October 2022, the SEC announced that it had settled with Kim Kardashian in the amount of $1.2 million for charges very similar to those Pierce was facing.

SEC Chairman Gary Gensler said, “This case is yet another reminder to celebrities: The law requires you to disclose to the public who and how much you’re paid to promote investing in securities, and you can’t lie to investors.” when to promote safety”. “This case is yet another reminder to celebrities that you are required by law to disclose to the public who and how much you are paid to promote investment in securities”, “When celebrities advocate for investment options, including crypto asset securities, the Investors should be cautious when doing research to see if investments are right for them, and should be aware of the reasons celebrities make such recommendations.”