NBA champion Paul Pierce stung in $2m crypto drama

Former NBA star Paul Pierce has been caught out over a cryptocurrency debacle which has cost the 2008 champion dearly.

Former Boston Celtics star Paul Pierce was ordered to pay more than $1.4 million ($A2m) in penalties after being charged with making false and misleading statements about crypto securities he was paid to promote, US regulators said Friday.

The Securities and Exchange Commission (SEC) said in a statement Pierce had been charged with touting EthereumMax (EMAX) tokens without disclosing that he had been paid to do so.

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The SEC statement said Pierce — nicknamed ‘The Truth’ during his playing days — was paid EMAX tokens worth $244,000 to promote the securities.

The 45-year-old also posted a screenshot of an account showing large holdings and profits of the securities when in fact his holdings were much lower than those shown.

Pierce reportedly settled the charges without admitting to or denying the charges.

However, he will be fined $1.1m ($A1.6m) in his fine and $240k ($A349k) in the profits of the “ill-gotten gains” as well as interest.

“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 chief Gary Gensler said.

“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.”

Paul Pierce went to the 2019 NRL Grand Final. Photo: AAP Image/Dean Lewins

Pierce is a 10-time NBA All-Star who was NBA Finals Most Valuable Player in 2008, when he led Boston to the NBA championship.

Pierce is far from the first celebrity to be stung as the likes of Kim Kardashian and Floyd Mayweather had also been penalised for their roles in the promoting crypto tokens through social media.

Originally published as NBA champion Paul Pierce stung in $2m crypto drama