NBA Star Paul Lock Agrees To Pay Rp21 BILLION For The Settlement Of The Case Of Promotion Of Illegal Digital Assets

Paul Lock the former Boston Celtics star who illegally promoted crypto. (photo: Twitter @paulpierce34)

JAKARTA - Former US professional basketball star Paul blocklock has agreed to pay more than US$1.4 million (Rp21 billion) to settle allegations he is promoting digital assets illegally. This was stated by the main financial regulator Wall Street on Friday, February 17.

US Securities and Exchange Commission (SEC) said that blockhouse promoted crypto tokens sold by EthereumMax on social media without revealing that he was paid to do so, and made misleading statements about the product.

The settlement with former Boston Celtic and NBA Hall-of-Famer players is the SEC's latest move to crack down on celebrity offerings on crypto products. According to the SEC, mediate finalizing the charges without acknowledging or denying it, agreeing to pay a fine of US$1.1 million (Rp16.6 billion) and another US$240,000 (Rp3.6 billion) representing an unlawfully obtained return of profits plus interest.

"This case is another reminder for celebrities that Law requires you to disclose to the public from whom and how much you receive to promote investment in securities, and you should not lie to investors when you promote securities," SEC Chair Gary Gensler said in a statement.

Meanwhile representatives for blockage did not immediately respond to requests for comment from the media on the fine.

Last year, the SEC sanctioned several celebrities, including reality TV star Kim Kardashian and former boxer Floyd Mayweather Jr for their role in promoting crypto tokens inappropriately through social media.

Under Gensler's leadership, the SEC has taken firm action against the still-new cryptocurrency industry, by increasing law enforcement measures against trading platforms accused of operating outside investor protection laws.

The agency this week proposed a new rule regulating asset storage managed by hedge funds and other people criticized to hinder investment in digital currencies.