TikTok Denies US Accusations Over Memecoin Acquisition

TikTok, the Chinese social media platform, has denied reports suggesting its ownership has purchased Donald Trump’s memecoin.

Response to Representative Sherman’s Claims

The TikTok Policy official account addressed the allegations on X. The account stated that reports claiming “Chinese owners of TikTok have announced they are buying ‘Trump Coins’ for $300 million,” initiated by California Democratic Representative Brad Sherman, are “patently false and irresponsible.”

“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,” the account asserted.

Background: Allegations and Exec Orders

Sherman’s claims came amidst news of another executive order signed by President Trump further delaying the previously scheduled termination of TikTok operations in the United States. This marked the third extension of the TikTok ban.

Trump’s latest order provided TikTok, owned by ByteDance and facing ownership questions connected to GD Culture Group, an additional 90 days to find a US buyer. Sherman argued that US law permits only one extension and that the continued delay constitutes illegal action.

Sherman’s accusations appeared linked to earlier reports about GD Culture Group, a Nasdaq-listed company producing AI-enhanced content for TikTok, announcing plans to invest $300 million in “Trump Coins” alongside Bitcoin in May. Although GD Culture has no known formal ties to TikTok or ByteDance, its relevance to the ownership question remains debated.

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Mixed Public Response to Allegations

While some commenters expressed skepticism towards TikTok’s denial, many found Sherman’s claims untrustworthy. Others voiced doubts about the feasibility of creating a cryptocurrency without significant initial costs.

Furthermore, Sherman’s focus on the TikTok situation appears secondary to his long-standing hostility towards cryptocurrency, particularly its potential impact on the dollar. Conversely, the Trump administration officially supports specific crypto developments, such as US-dollar-pegged stablecoins.