tl;dr
TikTok has denied Congressman Brad Sherman's claim that its Chinese owners purchased $300 million worth of TRUMP meme coins to bribe President Trump. Sherman accused the owners of bribery following Trump's 90-day extension of the U.S. TikTok ban, which Sherman says is illegal as only one extension i...
Congressman Brad Sherman has accused TikTok's Chinese owners of purchasing $300 million in TRUMP meme coins as a bribe to President Trump, an allegation that TikTok has strongly denied. Sherman made the claim following President Trump's 90-day extension delaying the U.S. ban on TikTok, which Sherman argues is illegal since the law permits only one such extension.
TikTok's parent company, ByteDance, continues to face intense pressure to divest its U.S. operations due to national security concerns. The accusation centers on GD Culture Group, a small tech firm with a Chinese subsidiary that announced a $300 million investment in TRUMP meme coins but has no known official ties to ByteDance.
Senators Elizabeth Warren and Adam Schiff, along with Representative Jake Auchincloss, have called for investigations into the TRUMP meme coin amid fears of foreign influence and conflicts of interest. These concerns were heightened by a private dinner for top holders of the meme coin, which reignited debates about possible crypto-related corruption and led to protests and calls for an ethics inquiry.
Congressman Sherman's criticism includes the claim that TikTok’s owners’ purchase of TRUMP coins effectively funnels money to the President without cost, framing it as a $300 million bribe. TikTok has denied these allegations as false and irresponsible, also disputing the accuracy of a letter Sherman signed last month.
Despite TikTok’s repeated reassurances, the issue spotlights ongoing tensions between U.S. regulatory efforts to ban or control Chinese-owned tech platforms and the emerging influence of cryptocurrencies linked to political figures. GD Culture Group’s sudden financial move into meme coins contrasts with its minimal staff, low revenue, and focus on social media marketing, raising questions about the legitimacy and rationale behind its investment.
The broader context includes a year-long struggle over TikTok’s presence in the U.S., legislative attempts to force ByteDance to sell its American operations, and President Trump’s extensions of the ban deadline, which Sherman labels unlawful. The intersection of cryptocurrency, foreign investment, political influence, and national security continues to fuel heated debates within government and the public sphere.