TikTok Denies Allegations of Purchasing ‘Trump Coins’ as Bribery
In a recent and controversial twist in the ongoing saga surrounding the potential U.S. ban on TikTok, Congressman Brad Sherman (D-CA-32) has levied serious accusations against the social media giant. Sherman claims that TikTok’s Chinese owners have engaged in a dubious financial transaction involving the purchase of ‘Trump Coins’ worth $300 million, suggesting this act as a direct bribe to U.S. President Donald Trump.
Accusations and Rebuttals
The allegations surfaced when Congressman Sherman took to Twitter, stating that the purchase of these meme coins by TikTok’s owners was a clear attempt to influence President Trump, who had recently announced a 90-day delay to the looming ban on the app. According to Sherman, this delay is illegal, as the law permits only a single extension of the ban.
TikTok was quick to respond, dismissing the allegations as “patently false and irresponsible.” The company emphasized that the claims do not reflect the reality of their operations or corporate decisions. This rebuttal was posted on TikTok’s official policy Twitter account, aiming to clear the air surrounding the contentious issue.
The Background of the Ban
The potential ban on TikTok has been a topic of intense discussion and legal maneuvering for over a year. The U.S. government, citing national security concerns due to the app’s Chinese origins and potential data privacy issues, has been pushing for TikTok to divest its U.S. operations to an American company. In a dramatic turn of events, TikTok experienced a temporary blackout earlier in January 2025 before President Trump signed an executive order delaying the ban.
This delay, now extended by an additional 90 days, has sparked further controversy and legal scrutiny. Congressman Sherman argues that this extension violates the stipulations set by the Supreme Court act, which allows only one extension of no more than 90 days.
GD Culture Group and the Trump Coins
The plot thickens with the involvement of GD Culture Group, a small tech company with a Chinese subsidiary, which has been reported to have made a $300 million investment in the TRUMP meme coin. This company, despite having minimal revenue and only eight employees, has seen its stock rise by 307% on Nasdaq following the announcement of this investment.
GD Culture Group, which also operates a TikTok account and offers various services related to the platform, has no official ties to ByteDance, TikTok’s parent company. This raises questions about the nature of its investment and the actual flow of funds.
Broader Implications and Crypto Concerns
The issue extends beyond mere corporate transactions. High-profile figures like Senator Elizabeth Warren (D-MA) and Representative Jake Auchincloss (D-MA-4) have expressed concerns about the TRUMP meme coin being a potential conduit for foreign influence over the President. These concerns were amplified following an exclusive dinner event for top holders of the coin, which President Trump attended, raising alarms about possible conflicts of interest and national security implications.
The controversy has sparked a broader debate on the role of cryptocurrency in political and corporate governance, with calls for increased regulation and oversight to prevent what some see as an emerging form of ‘crypto corruption.’
As the situation unfolds, the global community watches closely, awaiting further developments in this complex interplay of international business, politics, and digital currency. Meanwhile, TikTok continues to operate amidst these turbulent waters, maintaining its stance against the allegations and striving to navigate the challenging regulatory environment.
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