SEC Chairman Gary Gensler said investors in crypto projects “should know why those celebrities endorse those projects,” as Kim Kardashian and Paul Pierce did when promoting EMAX through social media. media
In an announcement on February 17, the SEC said Pierce promotes his EthereumMax (EMAX) token through social media channels without disclosing that he was paid for the promotion and the post. “False and misleading statements” about the project According to the SEC, the sponsor paid the former NBA star $244,000 in EMAX tokens to allow him to post misleading statements about his profits on Twitter.
Financial regulators have previously targeted “celebrities” promoting the EthereumMax token. In October last year, Kim Kardashian faced charges similar to the one Pierce is facing, in this case. She has not disclosed that she received $250,000 to promote her EMAX tokens on Instagram.
“This is another reminder for celebrities: the law requires you to disclose to the public from whom and how much you were paid to promote your investment in securities. And you can’t lie to investors when you sell securities,” SEC Chairman Gary Gensler said.
“And when I see celebrities come out to promote investment opportunities. Including securities in digital assets Investors should be careful whether the investment is right for them. And they should know why celebrities support it.”
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