Over the past few years, a number of celebrities and star athletes have been caught up in cryptocurrency scandals, including NFL legend Tom Brady who was investigated for his role in what appeared to be a Ponzi scheme, though it was eventually revealed that he was a victim, losing tens of millions as a result of a bad investment. And it looks like NBA legend Paul Pierce is the latest high-profile person facing charges.
According to a report for Yahoo! Finance, the Securities and Exchange Commission has charged Paul Pierce with making false misleading promotional statements about the cryptocurrency token, EthereumMax after the Hall of Fame player failed to disclose that he was paid $244,000 of EMAX to promote the crypto token.
“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 Chair Gary Gensler said according to Yahoo! Finance.
Not only did Pierce fail to disclose a payment, but he also misrepresented his investment with the company, tweeting a screenshot of an account showing large holdings and profits. However, that account did not belong to him as his gains were far smaller.
“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,” Gensler said.
