Paul Pierce has agreed to pay a hefty sum of $1.4 million after being accused of improperly promoting cryptocurrency on social media.
The Securities and Exchange Commission (SEC) announced the settlement on Friday, following charges against Pierce over his promotion of EMAX tokens on Twitter.
The SEC alleged that Pierce promoted EthereumMax products without disclosing the payment he received for the promotion.
Furthermore, it claimed that Pierce made false and misleading statements about the product.
The former Celtics forward was paid over $244,000 to promote the items, while allegedly tweeting an image of a bank account with large figures, despite his account having a significantly lower total.
As part of the settlement, Pierce has agreed to pay $1.409 million in penalties, disgorgement, and interest to settle the charges.
SEC Chair Gary Gensler issued a statement, saying that this case serves as a reminder to celebrities that the law requires them to disclose to the public from whom and how much they are getting paid to promote securities.
He also warned investors to be cautious and research investment opportunities endorsed by celebrities, including crypto asset securities.
Pierce has not commented publicly on the case.