TikTok Denies $300M Trump Memecoin Purchase by Its Chinese Owners
TikTok rejects allegations that ByteDance purchased $300M worth of Trump memecoins, responding to bribery accusations from a U.S. Congressman.
TikTok denied claims that its Chinese owners bought $300 million worth of Official Trump (TRUMP) memecoins. The denial came after Congressman Brad Sherman accused the company of making the purchase as a bribe.
The TikTok Policy account posted on X, calling Sherman's claim “patently false and irresponsible.” The company said Sherman's statement “doesn't even accurately reflect a letter you signed last month” and rejected any suggestion that ByteDance or TikTok affiliates bought TRUMP tokens. TikTok emphasized that neither the company nor its parent company had any involvement in purchasing the tokens.
The confusion appears linked to reports about GD Culture Group, a NASDAQ-listed company with no formal ties to ByteDance, which announced plans in May to purchase $300 million worth of TRUMP tokens and Bitcoin for its AI-driven content operations on TikTok. The announcement led to speculation about potential connections between the investment and TikTok's Chinese ownership.
Sherman argued that “Trump creates ‘Trump Coins' at no cost, meaning this is just a $300 million bribe that goes right into his pocket.” He framed the alleged purchase as an illegal payoff.
Read on: Crypto or Influence? Inside Trump’s $2.6B Token Ecosystem
Sherman's accusations surfaced as President Donald Trump issued his third executive order extending TikTok's divestment deadline by 90 days to September 17, 2025. Lawmakers are questioning the legal validity of the postponement.
The social media platform faced a January 19, 2025 divestment deadline under the Protecting Americans from Foreign Adversary Controlled Applications Act. The Supreme Court upheld the law in January 2025, but enforcement has been delayed three times through presidential orders. The delays stem from ongoing national security and data privacy concerns surrounding the Chinese-owned platform.
Also read: HBAR Foundation and OnlyFans Founder Join Forces in Bid to Buy TikTok
The Trump administration's approach represents a shift from the previous administration's handling of the TikTok situation, though the fundamental legal framework requiring divestment remains in place.
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