February 17, (THEWILL) – Former NBA player and Hall of Famer, Paul Pierce, has been fined $1.4 million by the US Securities and Exchange Commission (SEC) for promoting a cryptocurrency token.
Pierce becomes the latest athlete to face penalties for endorsing the struggling digital asset, following in the footsteps of Kim Kardashian, who was fined $1.26 million for touting the same crypto token. The SEC’s order found that Pierce violated the anti-touting and antifraud provisions of the federal securities laws.
Ironically, Pierce’s fine comes after a federal judge dismissed a civil lawsuit two months ago that was aimed at the celebrities, who promoted Ethereum. However, SEC Chairman, Gary Gensler, stated that celebrities must disclose to the public how much they are being paid to promote investment in securities and must not lie to investors.
Gensler also stressed that investors should research investments and know why celebrities are making endorsements, including those related to crypto asset securities. Several lawsuits are pending against athletes for their promotion of the bankrupt crypto platform FTX, including Tom Brady, David Ortiz, Shohei Ohtani, and Naomi Osaka.
The plaintiffs in those suits are seeking an order that the accounts sold by FTX were securities and thus covered by federal securities regulations.
About the Author
Jude Obafemi is a versatile senior Correspondent at THEWILL Newspapers, excelling in sourcing, researching, and delivering sports news stories for both print and digital publications.
