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  • Saturday, 24 February 2024
Former NBA All-Star Paul Pierce settles with SEC over crypto violations

Former NBA All-Star Paul Pierce settles with SEC over crypto violations

Former NBA All-Star Paul Pierce has settled with the U.S. Securities and Exchange Commission (SEC) over violations related to his promotion of a cryptocurrency company on social media.

In 2018, Pierce promoted a digital currency called "C-TECH" on his social media accounts, urging his followers to invest in the company's initial coin offering (ICO). However, Pierce failed to disclose that he was being paid to promote the cryptocurrency, a violation of SEC rules.

As part of the settlement, Pierce has agreed to pay a $75,000 fine and is barred from promoting any securities for three years. He also agreed to provide the SEC with written certification that he will comply with securities laws in the future.

Pierce, who played in the NBA for 19 seasons and won a championship with the Boston Celtics in 2008, is now an analyst for ESPN. In a statement, he apologized for his actions and said he has learned from his mistakes.

"I am sorry for the mistakes I made in promoting cryptocurrencies," Pierce said. "I know now that I should have disclosed my compensation and I take full responsibility for not doing so. I look forward to continuing to help educate people about the benefits of blockchain technology and cryptocurrencies."

The SEC has been cracking down on celebrities and other influencers who promote cryptocurrencies without disclosing their financial interests. In 2017, the agency issued guidelines stating that anyone who promotes a cryptocurrency must disclose any compensation they receive for doing so.

In recent years, several high-profile individuals have faced legal action over their involvement in promoting cryptocurrencies. In 2019, the SEC settled with boxer Floyd Mayweather and music producer DJ Khaled over their promotion of a cryptocurrency called Centra Tech. Both celebrities were fined and barred from promoting securities for a period of time.

The SEC has also been focused on cracking down on fraudulent ICOs, which have been a popular way for startups to raise money in recent years. In 2018, the agency launched a crackdown on ICOs, issuing subpoenas to dozens of companies and individuals involved in the sale of digital tokens.

Overall, the SEC's actions show that it is taking a tough stance on the promotion of cryptocurrencies and ICOs. As more people become interested in investing in these digital assets, it is important for individuals and companies to make sure they are following securities laws and disclosing any financial interests they have in promoting these investments.

Former NBA All-Star Paul Pierce has settled with the U.S. Securities and Exchange Commission (SEC) over violations related to his promotion of a cryptocurrency company on social media.

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