TikTok Denies $300 Million Trump Coin Purchase Accusation

TikTok has vehemently denied accusations made by U.S. Congressman Brad Sherman, who alleged that the social media platform's Chinese owners had purchased $300 million worth of TRUMP memecoins. This accusation was made in an attempt to influence President Trump to extend the deadline for TikTok's closure in the U.S. for another 90 days. This marks the third extension granted to TikTok, allowing it more time to find a buyer or face a ban in the U.S.

Sherman's allegations included the claim that the White House is only authorized to offer one extension, asserting that Trump's actions were "illegal." Additionally, Sherman accused TikTok of bribing the U.S. government by purchasing "Trump (TRUMP) Coins" for $300 million. Sherman further stated that Trump creates "Trump Coins" at no cost, implying that this $300 million would go directly into Trump's pocket.

In response, TikTok's official policy account on X swiftly refuted Sherman's claims, describing them as "false and irresponsible." The platform emphasized that Sherman's accusations do not accurately reflect the content of a letter he signed last month. TikTok's official statement read, "Congressman, claiming that the owners of TikTok are buying 'Trump Coins' is patently false and irresponsible and doesn’t even accurately reflect a letter you signed last month."

The controversy surrounding Sherman's allegations appears to stem from a press release by GD Culture Group, a Nasdaq-listed company involved in AI-generated content and e-commerce. On May 12, GD Culture announced its intention to invest $300 million of its corporate funds into TRUMP memecoins and Bitcoin (BTC). However, GD Culture has no formal ties to TikTok, which is owned by ByteDance, a company based in China. There is no credible evidence suggesting that ByteDance has ever purchased TRUMP memecoins or any other cryptocurrency.

In August 2024, GD Culture announced the launch of its own TikTok account, @streamlineainews, dedicated to sharing updates, insights, and trends about artificial intelligence. This indicates that while GD Culture Group has a connection to TikTok, it is not owned by ByteDance. Instead, GD Culture is simply a client or user of the social media platform.

This incident has sparked debate and criticism, with some drawing parallels between Trump's actions and those of other world leaders. The controversy has also led to increased scrutiny of TikTok's operations and its relationship with the U.S. government. The situation highlights the complex dynamics between social media platforms, political figures, and regulatory bodies, underscoring the need for transparency and accountability in such interactions.