The U.S. Securities and Exchange Commission delivered another blow to celebrity-backed crypto promotions on February 17, 2023, announcing charges against NBA Hall of Famer Paul Pierce for failing to disclose that he was paid to promote EthereumMax (EMAX) tokens on social media.
TL;DR
- SEC charged Paul Pierce for unlawfully touting EMAX tokens without disclosing $244,000+ in compensation
- Pierce tweeted misleading statements about his crypto holdings and profits
- He agreed to a $1.4 million settlement ($1.1M penalty + $240K disgorgement)
- Pierce banned from promoting crypto asset securities for three years
- This follows the SEC’s $1.2 million settlement with Kim Kardashian over the same EMAX token in October 2022
The Charges Against Paul Pierce
The SEC’s enforcement action centers on Pierce’s promotion of EthereumMax tokens, a crypto asset security that gained significant attention in 2021 through celebrity endorsements. According to the SEC’s order, Pierce received more than $244,000 worth of EMAX tokens as compensation for promoting the project on Twitter, yet he never disclosed this payment arrangement to his followers.
Perhaps most damning was a tweet Pierce posted in May 2021, directed at his former employer ESPN: “@espn I don’t need you. I got @ethereum_max I made more money with this crypto in the past month then I did with y’all in a year.” The SEC noted that Pierce’s actual compensation from ESPN exceeded $1 million in 2020, and his personal EMAX holdings were significantly lower than what he displayed in a misleading screenshot shared with followers.
A Pattern of Celebrity Enforcement
The Pierce case is part of a broader SEC crackdown on celebrity crypto endorsements that has intensified under Chair Gary Gensler. EthereumMax is the same token at the center of the SEC’s October 2022 action against Kim Kardashian, who settled for $1.26 million after promoting EMAX to her millions of Instagram followers without disclosing a $250,000 payment she received.
“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,” Gensler said in a statement accompanying the announcement.
The Settlement Terms
Pierce agreed to settle the charges without admitting or denying the SEC’s findings. The total financial penalty amounts to approximately $1.4 million, broken down as a $1.1 million civil penalty plus roughly $240,000 in disgorgement and prejudgment interest. Additionally, Pierce consented to a three-year prohibition on promoting any crypto asset securities, effectively ending any future paid crypto endorsement deals in the near term.
The settlement sends a clear signal to other public figures involved in crypto promotions. Since the FTX collapse in November 2022, regulators have ramped up scrutiny of celebrity endorsements in the crypto space, treating undisclosed paid promotions as violations of federal securities laws.
Market Context
The enforcement action came on a day when Bitcoin was trading at approximately $24,500, having recently touched $25,000 for the first time since August 2022. The broader crypto market had been rallying in early 2023, with BTC gaining roughly 50% year-to-date from its post-FTX lows near $16,500. Ethereum was trading around $1,695. Despite the positive price action, regulatory headwinds continued to mount as U.S. agencies escalated their oversight of the digital asset industry.
Why This Matters
The Paul Pierce settlement represents more than just a single enforcement action — it signals the SEC’s determination to hold influential individuals accountable for how they promote crypto assets to retail investors. With the memory of FTX’s collapse still fresh and multiple celebrity-endorsed tokens having lost most of their value, regulators are drawing a harder line on disclosure requirements. For everyday investors, the case is a reminder that celebrity endorsements of crypto projects should never be taken at face value — and that behind many flashy social media posts lies an undisclosed paid promotion.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
pierce told espn he made more with emax in a month than them in a year but espn paid him over a million in 2020. the math was never mathing
244k in emax tokens as payment and he couldnt even disclose that. 1.4 million settlement is light considering the followers he influenced
Same EMAX token as the Kim Kardashian case. SEC is connecting the dots on these celebrity pump campaigns one by one.
3 year ban from promoting crypto securities is basically nothing. these guys will be back shilling the next token in 2026