Celtics Legend Paul Pierce Fined Over $1 Million by SEC for Crypto Breach

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Paul Pierce is the latest Boston sports legend to get himself in hot water over his cryptocurrency ties.

The Securities and Exchange Commission announced that it has indicted former Celtics star Paul Pierce for making false promotional statements regarding EMAX, a cryptocurrency sold by EthereumMax. The SEC also announced that Pierce had settled the charges and agreed to pay $1.409 million and would not promote any crypto asset securities for three years.

Pierce allegedly failed to disclose a payment of more than $244,000 of EMAX tokens from EthereumMax.

This case is another reminder to celebrities: the law requires you to disclose to the public who and how much you are paid to promote investment in securities, and you cannot lie to investors when you promote a security, said the SEC Chairman Gary Gensler. in a report. When celebrities endorse investment opportunities, including crypto asset securities, investors should be careful to research whether the investments are right for them, and they should find out why celebrities are making these endorsements.

The Celtics Hall of Famer has been a strong proponent of cryptocurrency. In May 2021, Pierce was fired from his role as an NBA analyst. A month later, Pierce tweeted at ESPN, telling the network that I didn’t need you because he had made more money with EMAX in the last month than I had with you all in a year, all by providing a link to the EthereumMax website.

Pierce is one of a number of top athletes who have faced legal backlash after promoting cryptocurrencies. Former Patriots quarterback Tom Brady has been linked to the dire legal fallout from the collapse of crypto broker FTX. Meanwhile, former tight end Rob Gronkowski has reportedly received a subpoena in a class action lawsuit against Voyager Digital.

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