TikTok Denies Allegations of Trump Coin Purchase by Owners

TikTok has vehemently denied allegations made by Congressman Brad Sherman regarding the purchase of $300 million worth of TRUMP memecoin. This controversy emerged amid escalating tensions between the US government and TikTok, as the country is on the verge of enforcing a nationwide ban on the platform.

TikTok Denies Claims of $300M TRUMP Meme Coin Buy

In an X post earlier today, TikTok, a Chinese social media platform, has refuted claims of a $300 million TRUMP coin purchase by its owners. This allegation was put forward by Congressman Brad Sherman, who claimed that President Donald Trump accepted a $300 million bribe from TikTok.

Interestingly, Sherman’s claims appear to be based on a recent $300 million deal involving GD Culture Group, a Chinese company with TikTok ties. As CoinGape reported earlier, the GD Culture Group announced plans to purchase $300 million worth of Bitcoin and Trump’s memecoin. Sherman wrote,

“The Chinese owners of TikToK have announced they are buying “Trump Coins” for $300 million. Trump creates ‘Trump Coins’ at no cost, meaning this is just a $300 million bribe that goes right into his pocket.”

However, the Chinese platform dismissed the statement, arguing, “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.”

Notably, these allegations unfold as President Trump has once again extended the deadline for the platform’s potential sale or ban, marking his third delay. Arguing that the US laws allow only one extension, Sherman addressed Trump’s action as illegal. Further, he stated, “The law allows only one single extension, so Trump’s failure to enforce it is illegal.”

Amid these allegations, the TRUMP coin continues to trade in red. At press time, the meme coin is trading at $9.37, down by 35% in a month.

TikTok Faces Potential Ban in the US

Significantly, TikTok is facing increased scrutiny in the United States as part of the ongoing US-China rivalry. With a massive user base of 170 million in the US, the app has just received a third deadline extension from President Donald Trump. By delaying the deadline, Trump has reignited a complex case that intertwines geopolitical pressure, technological challenges, and legal battles.

On Truth Social, Trump wrote, “I just signed the order extending the TikTok shutdown deadline by 90 days (until September 17, 2025). Thanks for your attention on this matter!”

Trump’s decision is part of a larger context of restrictive legislation, building on measures from the Biden administration that the Supreme Court has backed. According to the law, the Chinese platform faces a potential ban in the United States unless it is acquired by a US-based company.

This decision to extend the deadline represents a departure from Trump’s earlier stance on the app. Previously, he had sought a complete ban on the app in the US, but now he’s taking a more nuanced approach. American White House spokeswoman Karoline Leavitt stated that Trump’s deadline extension ensures that “the American people can continue to use TikTok with the assurance that their data is safe and secure”.