TikTok Refutes Allegations of $300 Million 'Bribe' via TRUMP MemeCoins amid US Ban Controversy

Controversial Accusations Against TikTok

The popular social media app TikTok recently found itself in the center of controversy as it was accused by a representative Brad Sherman from the Democratic Party of California, of intending to purchase a whopping $300 million worth of TRUMP memecoins, perceived as a ‘bribe.’ The allegations come at a crucial time, with the social media giant facing potential banishment from the U.S market.

The Allegations by Brad Sherman

In a scorching allegation by Congressman Sherman, made public during a Thursday night debate, he accused TikTok of indulging in undue practices to offset its expected banishment. Sherman referenced the bipartisan Protecting Americans from Foreign Adversary Controlled Applications Act – a law enacted in April 2024 requiring ByteDance, the parent company of TikTok, to relinquish its U.S operations by January 19. However, the situation took a controversial turn when President Trump used executive orders to delay the deadline thrice with 90-day extensions, with his most recent extension pushing the deadline to September. It’s noted that the President has been using these extensions to create leverage while negotiations for a U.S. sale continues.

The Legal Puzzle

The series of extensions sparked a legal debate, as these actions were criticized by Sherman and others. The legal grounds for these extensions were called into question since the Supreme Court had previously stated that only a single extension of no more than 90 days is permitted. Sherman concluded in his remarks, “The law allows only one single extension, so Trump’s failure to enforce it is illegal. However, 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.”

TikTok’s Rejoinder

TikTok was quick to respond to the allegations and refuted Sherman’s claim in a tweet. They stressed that his statement was not only untrue but irresponsible as well. The tweet declared that the claim of the TikTok owners buying ‘Trump Coins’ was baseless and misguided. It argued that the claims do not even correctly reflect a letter that Sherman had signed the previous month.

The Misinterpretation

The accusations appear to be a case of misconception on Sherman’s part, as the TRUMP memecoin acquisition plan appears to be tied to another corporation entirely. In May, it was reported by GD Culture Group, a Nasdaq-listed company, that they had signed an agreement with a British Virgin Islands-based investor to sell up to $300 million worth of shares. This plan was part of a larger crypto acquisition strategy that included the purchase of Bitcoin and Official Trump memecoin.

The GD Culture Group and TikTok Connection

GD Culture Group, a slender $47 million market cap publicly traded company based in Nevada with a China-based subsidiary, has no evident connections to ByteDance, TikTok’s parent company. GD Culture Group’s core services such as AI-powered digital-human services, livestream commerce, interactive games, and content production are deeply grounded in the TikTok platform. However, this seems to be the extent of the connection between the two.

Seeking Further Commentary

In response to these unfolding developments, requests for commentary were sent out to Congressman Sherman’s office and TikTok. The entire crypto community is patiently awaiting their response.

Disclaimer

This article is expressly for informational purposes. It is not intended to be used as legal, tax, investment, financial, or any other form of advice. While every effort has been made to ensure the accuracy of the information, the author assumes no responsibility for any error, omission, or inaccuracy. All content © 2025. All Rights Reserved.

TikTok Refutes Allegations of $300 Million ‘Bribe’ via TRUMP MemeCoins amid US Ban Controversy