• The Securities and Exchange Commission (SEC) charged former NBA player Paul Pierce on Feb. 17, 2023, for promoting and making false statements about EMAX tokens.
• Pierce did not disclose how much he was paid for the promotion during the trial. He was paid more than $244,000 worth of EMAX tokens to promote the token on Twitter.
• The SEC order found out that Pierce violated antifraud and anti-touting sections of the federal securities laws and ordered him to pay a disgorgement, penalties, and interest of $1.409 million.
SEC Charges Former NBA Player Paul Pierce
The Securities and Exchange Commission (SEC) charged former NBA player Paul Pierce on Feb. 17, 2023 with promoting false statements about EMAX tokens.
Pierce Paid Over $244k For Promotion
The SEC order found that he was paid more than $244,000 worth of EMAX tokens to promote the token on Twitter without disclosing how much he was paid for the promotion during the trial.
Violated Federal Securities Laws
The SEC order also found out that Pierce violated antifraud and anti-touting sections of the federal securities laws which require promoters to disclose all material information related to security offerings, false or misleading information as well as control person liability.
Ordered To Pay Disgorgement And Penalties
Pierce did not admit or deny any charges but agreed to pay a disgorgement of $240,000 along with prejudgment interest and a penalty of $1,115,000 as well as consenting not to campaign for any crypto asset securities for three years.
SEC Advises Crypto-Asset Securities Promoters And Investors
SEC Chair Gary Gensler released a statement warning investors about investing in crypto assets without verifying facts from reliable sources before investing in them due to their volatile nature