TikTok has formally rebutted allegations suggesting that its Chinese ownership group intends to purchase “Trump Coins,” the meme coin associated with former President Donald Trump.
Key Points:
TikTok has denied any involvement in the purchase of Trump’s official meme coin.
Representative Brad Sherman alleged a $300 million Trump Coin acquisition involving TikTok, referencing GD Culture Group.
Skeptics challenged both Sherman’s cryptocurrency assertions and the rationale behind the supposed meme coin investment.
The platform’s official policy account addressed the issue on Thursday, labeling the allegations as “patently false and irresponsible” in a post on X.
This response followed claims made by California Democrat Brad Sherman, who suggested that TikTok’s parent company was poised to buy $300 million worth of the Trump (TRUMP) meme coin.
“Congressman, claiming that the owners of TikTok are buying ‘Trump Coins’ does not accurately reflect a letter you signed last month,” the account stated, pointing out inconsistencies in Sherman’s assertions.
Trump Grants TikTok Third Extension Amid Rising Political Tensions
The accusations surfaced soon after Trump issued an executive order granting TikTok a 90-day extension to secure a U.S. buyer, marking the third delay in the ongoing negotiations linked to national security concerns over the app’s Chinese ownership.
Sherman, a staunch critic of TikTok and cryptocurrencies, referenced reports involving GD Culture Group, a firm listed on Nasdaq that specializes in AI-generated content on TikTok.
The company reportedly disclosed plans in May to invest $300 million in both the TRUMP meme coin and Bitcoin. However, GD Culture does not have any formal connections to TikTok or its parent company, ByteDance.
Sherman condemned the meme coin investment as a “$300 million bribe” to Trump, claiming the coin was created “at no cost.”
Critics quickly questioned both the legal basis of Sherman’s TikTok-related claims and the economic rationale behind his remarks regarding the meme coin.
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. https://t.co/8uxxPrKlzP
— TikTok Policy (@TikTokPolicy) June 19, 2025
A swift backlash ensued on social media, with users challenging Sherman’s credibility and accusing him of promoting political agendas.
Others expressed skepticism about the viability of launching a cryptocurrency without incurring any development or liquidity expenses.
Sherman has long advocated against the crypto industry, having called for a complete ban on digital currencies in the past.
In contrast, Trump and his allies have started to embrace the crypto sector, endorsing stablecoins as mechanisms to bolster the U.S. dollar’s position globally.
Trump Continues to Capitalize on Crypto Market Momentum
Meanwhile, Donald Trump is taking advantage of current trends in the cryptocurrency market.
Recent financial disclosures revealed that the former president garnered $58 million from crypto ventures in 2024, chiefly from WLFI token sales.
This amount ranks just below his earnings from the hospitality sector and is projected to increase further in 2025, with a potential $390 million token sale and profits from his meme coin, which debuted in January.
Concerns have been raised about possible conflicts of interest stemming from his involvement in Bitcoin mining, tokenized assets, and digital ETFs.
Critics note that some of Trump’s businesses have benefitted from favorable policy developments during his presidency.
Notably, the SEC has approved the registration statement for Trump Media and Technology Group’s (TMTG) $2.3 billion Bitcoin treasury initiative, with a filing dated June 13 that covers 85 million shares, including 29 million tied to convertible notes.
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