TikTok has vehemently denied the allegations made by Congressman Brad Sherman regarding the purchase of $300 million in TRUMP memecoins. This controversy has arisen amid escalating tensions between the U.S. government and TikTok, as the country is on the brink of enforcing a nationwide ban on the platform.
TikTok Denies Allegation of $300 Million Purchase of TRUMP Meme Coin
In a post on X earlier today, TikTok, a Chinese social media platform, denied claims regarding the platform's owners purchasing $300 million in TRUMP coins. This allegation was made by Congressman Brad Sherman, who claimed that President Donald Trump received a $300 million bribe from TikTok.
Interestingly, Sherman’s statement seems to be based on a recent $300 million deal involving GD Culture Group, a Chinese company associated with TikTok. As CoinGape reported earlier, GD Culture Group announced plans to purchase $300 million in Bitcoin and Trump memecoins. Sherman wrote,
“The Chinese owners of TikTok have announced that they will buy 'Trump Coins' for $300 million. Trump creates 'Trump Coins' without cost, meaning this is just a $300 million bribe straight into his pocket.”
However, the Chinese platform has rejected this claim, arguing that: “Congressman, the statement that TikTok’s owners are buying 'Trump Coin' is completely false and irresponsible, and does not even accurately reflect the letter he signed last month.”
Notably, these allegations come as President Trump once again extends the deadline for the potential sale or ban of this platform, marking his third delay. Arguing that U.S. law only allows a single extension, Sherman claims that Trump’s actions are illegal. Furthermore, he stated, “The law only allows for one extension, so Trump’s inaction is illegal.”
Amid these allegations, the TRUMP coin continues to trade in the red. At the time of reporting, this meme coin was trading at $9.37, down 35% in a month.
TikTok Faces Potential Ban in the United States
It is noteworthy that TikTok is facing increasing scrutiny in the U.S. as part of the ongoing competition between the U.S. and China. With a massive user base of 170 million in the U.S., the app has just received its third deadline extension from President Donald Trump. By delaying the deadline, Trump has reignited a complex case intertwined with geopolitical pressure, technological challenges, and legal battles.
On Truth Social, Trump wrote, “I just signed an order extending the TikTok shutdown deadline by 90 days (until September 17, 2025). Thank you for your interest in this matter!”
Trump’s decision is part of a larger context of restrictive laws based on measures from the Biden administration that the Supreme Court has upheld. Under the law, the Chinese platform faces a potential ban in the U.S. unless acquired by a U.S.-based company.
The decision to extend this deadline marks a shift from Trump’s previous stance on the app. Previously, he sought to ban the app outright in the U.S., but now he is taking a more nuanced approach. U.S. White House spokesperson Karoline Leavitt stated that Trump’s extension ensures that “the American people can continue to use TikTok with the assurance that their data is safe and secure.”
