TikTok has firmly rejected allegations from U.S. Congressman Brad Sherman suggesting the company’s owners purchased $300 million worth of the TRUMP memecoin. The claims arose amid intensifying debate around a potential nationwide ban on TikTok in the United States, placing the platform under renewed scrutiny.
Sherman’s accusations appear to be linked to a $300 million cryptocurrency investment by GD Culture Group, a Chinese firm allegedly affiliated with TikTok. According to reports, the GD Culture Group intends to acquire both Bitcoin and TRUMP memecoin in a substantial deal. Sherman inferred from this that TikTok’s ownership was directly involved in the memecoin purchase and suggested the transaction might represent a financial favor to former President Donald Trump. In a public statement, Sherman alleged that Trump generated the memecoin at no expense and stood to benefit personally from the deal.
TikTok responded swiftly and firmly on its official X account, asserting that the accusations were not only inaccurate but also misleading. The company emphasized that linking TikTok’s ownership to the TRUMP coin transaction was baseless. It further argued that Sherman’s interpretation even misrepresented a letter he had endorsed the previous month.
These developments come just as former President Trump has approved another extension of the deadline concerning TikTok’s potential sale or ban in the U.S. This marks the third such extension. According to Sherman, only one extension is legally permitted, and any further delays breach existing law. He labeled Trump’s move as a violation, reigniting a legal and political dispute surrounding the platform’s future in the country.
While the controversy unfolds, the TRUMP memecoin has seen a decline in market value. It is currently trading at $9.37, reflecting a 35 percent drop over the past month.
The broader context of this clash is the ongoing tension between the U.S. and China over technology and data privacy. With 170 million American users, TikTok remains at the center of legislative efforts aimed at curbing perceived foreign influence in digital platforms. The recent 90-day extension granted by Trump delays enforcement action until September 17, 2025. The administration maintains that unless TikTok is sold to a U.S.-based company, a ban could still be enforced.
White House spokeswoman Karoline Leavitt reinforced that the extension aims to safeguard American users, ensuring their data remains protected during this ongoing transition.
