The U.S. Securities and Exchange Commission (SEC) has charged Basketball Hall of Famer Paul Pierce for promoting EMAX tokens, crypto asset securities offered and sold by EthereumMax, without disclosing the payment he received for the promotion and for making false and misleading statements about EMAX tokens.

Pierce agreed to pay $1.409m in penalties, disgorgement and interest, and has agreed not to promote any crypto asset securities for three years.

According to SEC statement, Pierce failed to disclose that he was paid over $244,000 in EMAX tokens to promote them on Twitter and 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". In addition, Pierce also includes link to the EthereumMax website in his tweet, luring  potential investors to purchase EMAX tokens.

SEC stated that Pierce violated the anti-touting and antifraud provisions of the federal securities laws. Pierce agreed to pay a $1,115,000 penalty and approximately $240,000 in disgorgement and prejudgment interest. Pierce also agreed to not promote any crypto asset securities for three years.

  "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."