TikTok has denied U.S. Representative Brad Sherman's allegations that the company plans to purchase TRUMP memecoin worth $300 million.
Tiktok: Sherman's Allegations Are 'Completely False'
The video-sharing social media platform TikTok has denied claims that they recently purchased or plan to purchase TRUMP memecoin worth millions of dollars. The Singapore-based company criticized U.S. Representative Brad Sherman for making 'completely false and irresponsible' allegations that they announced plans to buy $300 million worth of TRUMP tokens.
In a social media post responding to Sherman, TikTok argued that the U.S. lawmaker's claims do not reflect the letter he signed in May. In that May letter, co-signed with other Democratic lawmakers, Sherman urged the Trump administration to comply with the law regarding TikTok. The letter also reiterated concerns about Chinese ownership of the social media platform.
The crux of the lawmakers' concern is the fear that the Trump administration will extend the deadline for TikTok to find a buyer in the U.S. by another 90 days, a move they consider illegal. However, the U.S. president announced on June 19 that he had extended the deadline to September 17, which infuriated Sherman.
In response to Trump's announcement, Sherman reiterated that the administration's failure to enforce the law made his extension illegal.
"The law only allows for one extension, so Trump's failure to enforce it is illegal. However, the Chinese owners of TikTok have claimed they are buying 'Trump Coin' for $300 million. Trump created 'Trump Coin' without any fees, meaning this is just a $300 million bribe flowing straight into his pockets," Sherman wrote on X.
Launched just hours before Trump's inauguration on January 20, the memecoin experienced an immediate and explosive price surge, skyrocketing to an all-time high of $73.43 within just 48 hours. However, the initial excitement did not last; since that peak, the value of the memecoin has undergone a significant and continuous decline.
Critics of the U.S. president have made serious allegations against Trump, claiming that he not only exploits memecoin for personal gain but also misuses government resources to artificially inflate the value of this currency and maintain its presence in the market.
Meanwhile, the executive order signed by Trump states that the Department of Justice (DOJ) is not allowed to act to enforce the American Citizen Protection Act against foreign adversaries' control requests. Extending the deadline also means the DOJ cannot impose penalties on TikTok.
This executive order also warns states or private parties not to attempt to take enforcement action, as doing so would equate to infringing on the authority of the executive branch.