TikTok is strongly denying claims that its Chinese owners purchased $300 million worth of the “Official Trump” (TRUMP) memecoin. This denial comes after Congressman Brad Sherman made these accusations.
TikTok’s Response
TikTok’s official policy account on X (formerly Twitter) called the allegations “patently false and irresponsible,” pointing out inconsistencies with a letter Congressman Sherman himself signed last month.
The Timing of the Accusations
The accusations arose shortly after President Trump issued his third executive order delaying a potential ban or forced sale of TikTok in the US. This delay gave TikTok another 90 days to find a buyer. The timing of Sherman’s statement led some to speculate about a possible connection between the delay and the accusations.
The GD Culture Group Connection
The confusion stems from an SEC filing by GD Culture Group, a small Nasdaq-listed company that creates AI-driven videos for TikTok. GD Culture announced plans to buy up to $300 million in Trump memecoins and Bitcoin. However, GD Culture isn’t owned by ByteDance (TikTok’s parent company) and has no overlapping board members. This loose connection fueled speculation that TikTok was secretly funding the memecoin purchase.
Congressman Sherman’s Crypto Concerns
Congressman Sherman claims the Trump memecoin purchase is essentially a “$300 million bribe” to Trump, citing the coin’s zero cost of creation. Sherman is a known critic of cryptocurrency, having previously warned about its potential to replace the US dollar. His concerns about TikTok’s Chinese ownership appear to be intertwined with his broader distrust of crypto.
Mixed Online Reactions
Online reactions were divided. Some users remained skeptical of TikTok’s denial, suggesting deeper Chinese influence. Others criticized Sherman’s anti-crypto stance and his calls for a TikTok ban. The situation quickly escalated into a heated online debate.
A Perfect Storm
In short, a seemingly innocuous SEC filing and a tweet from a congressman quickly spiraled into a major controversy involving a social media platform fighting for its US presence, a lawmaker raising concerns about foreign influence, and the volatile world of cryptocurrency.