BOSTON — File this under “The Truth” hurts.
Former Celtics great Paul Pierce (nicknamed “The Truth” for his sharpshooting in clutch moments) is being ordered to pay a $1.4 million penalty to the SEC. That includes a $1.115 million fine and around $240,000 in “disgorgement and prejudgment interest,” the Securities and Exchange Commission announced Friday.
The NBA Hall of Famer must dig deep over allegations he unlawfully touted crypto securities while the SEC says he failed to reveal he was also being paid for tweeting his support.
He was pumping up EthereumMax, or EMAX, just as fellow uber-celebrity Kim Kardashian had done. She paid the SEC over $1 million.
The SEC posted Pierce’s fine and jumped on it to call out the sometimes loosey-goosey cryptocurrency market.
“This case is yet another reminder to celebrities: The law requires you to disclose to the public from whom and how much you are getting paid to promote investment in securities, and you can’t lie to investors when you tout a security,” said SEC Chair Gary Gensler. “When celebrities endorse investment opportunities, including crypto asset securities, investors should be careful to research if the investments are right for them, and they should know why celebrities are making those endorsements.”
Pierce declined to comment through a representative, the Wall Street Journal reported.
The cryptocurrency gold rush has taken a dive as the unregulated topsy-turvey blockchain markets rise and fall almost to extremes as people speculate on digital currency.
Bitcoin was up 4.16% Friday evening; Ethereum was close behind at 3.27% in the black, according to Coinbase platform.
The SEC said in its release that Pierce “tweeted misleading statements related to EMAX, including tweeting a screenshot of an account showing large holdings and profits without disclosing that his own personal holdings were in fact much lower than those in the screenshot.”
Pierce also included a link to the EthereumMax website, also called out by the SEC for being disingenuous.
“The federal securities laws are clear that any celebrity or other individual who promotes a crypto asset security must disclose the nature, source, and amount of compensation they received in exchange for the promotion,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “Investors are entitled to know whether a promoter of a security is unbiased, and Mr. Pierce failed to disclose this information.”
Pierce did not admit or deny the SEC’s findings. The 6-foot, 7-inch small forward won an NBA title with the Celtics in 2008.
