US Congressman Brad Sherman accused TikTok's Chinese owners of purchasing $300 million worth of TRUMP meme coins as a bribe to influence US President Donald Trump. Sherman highlighted that Trump extended the US TikTok ban deadline by 90 days, a move Sherman claims is illegal since only one extension is permitted.
TikTok strongly denied these accusations, calling them "patently false and irresponsible," and stated the claims contradict a letter Sherman signed in May. No on-chain evidence currently supports the purchase allegation.
The controversy unfolds amid TikTok’s ongoing regulatory challenges, including requirements to divest its US operations and investigations into potential unregistered crypto exchange activities. The story also touches on the GD Culture Group, a small tech company linked tangentially via TikTok but without official connection to ByteDance, whose stock surged after announcing an investment plan for the TRUMP meme coin.
The TRUMP meme coin itself has garnered attention due to celebrity endorsements and political ties but faces scrutiny over possible foreign influence and conflict of interest. Despite the tumult, the token showed modest gains recently.