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The U.S. Securities and Exchange Commission
said Pierce promoted crypto tokens sold by EthereumMax on social
media without disclosing he was paid to do so, and made
misleading statements about the product.
The settlement with the former Boston Celtic and NBA
Hall-of-Famer marks the latest move by the SEC to crack down on
celebrity endorsements of crypto products.
Pierce settled the charges without admitting or denying them,
agreeing to pay $1.1 million in fines and another $240,000
representing the disgorgement of ill-gotten gains plus interest,
according to the SEC.
"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," SEC
Chairman Gary Gensler said in a statement.
A representative for Pierce did not immediately respond to a
request for comment.
Last year, the SEC penalized several celebrities, including
reality TV star Kim Kardashian and former boxer Floyd Mayweather
Jr for their roles in improperly promoting crypto tokens through
social media.
Under Gensler, the SEC has taken a hard line against the nascent
cryptocurrency industry, multiplying enforcement actions against
trading platforms accused of operating outside investor
protection laws. The agency this week proposed new rules
governing custody of assets under management by hedge funds and
others which critics said would hinder investment in digital
currencies.
(Reporting by Pete Schroeder, Editing by Franklin Paul and David
Gregorio)
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