TikTok refutes allegations of purchasing Trump memecoins for ban extension

Social media platform TikTok has denied claims of purchasing TRUMP memecoin in response to an accusation by a U.S. Congressman. In a statement released via an official TikTok Policy X account on Thursday, the Chinese-owned platform disregarded claims that its owners are buying the Official Trump (TRUMP) memecoin. 

In what he termed a bribery situation, California Democratic Party Representative Brad Sherman had earlier claimed that Chinese owners of TikTok are buying Trump Coins for $300 million.

“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,” TikTok Policy said, denying it has anything to do with it. 

Sherman’s comment and the social media platform’s reactions come hours after President Trump signed an executive order extending the video app’s U.S. ‘sale or ban’ enforcement by another 95 days. 

The policy, which mandates the Chinese company to divest its U.S. operations to another owner, has now been given three lifelines in total. The first lapsed on April 5, while the second extension of 75 days was meant to lapse on June 19. 

Read More: TikTok ban: President Trump delays enforcement by another 90 days.

Against all odds, President Trump has remained firm on his promise to keep the app safe in the U.S. while it works on making a deal possible. He has also been reviewing proposals from interested parties. 

“We are grateful for President Trump’s leadership and support in ensuring that TikTok continues to be available for more than 170 million American users and 7.5 million U.S. businesses that rely on the platform as we continue to work with Vice President [JD] Vance’s Office,” a statement from the platform reads in appreciation. 

White House press secretary Karoline Leavitt also said that the Trump administration wanted to ensure that Americans could continue to access the popular short video app.

“As he has said many times, President Trump does not want TikTok to go dark. This extension will last 90 days, which the administration will spend working to ensure this deal is closed so that the American people can continue to use TikTok with the assurance that their data is safe and secure,” Leavitt said.

Sherman’s argument against TikTok’s ‘sell or ban’ extension

According to the Congressman, the United States laws allow only one extension. He argued that Donald Trump’s decision to delay the ‘sell or ban’ enforcement on TikTok is illegal and needs critical examination. 

In addition, Sherman’s allegations referred to a report in May that TikTok-connected GD Culture Group announced plans to buy $300 million of Trump memecoin and Bitcoin. While it doesn’t have an obvious tie with the app or ByteDance, GD Culture produces artificial intelligence-enhanced content on TikTok as one of its main operations.

“Trump creates ‘Trump Coins’ at no cost, meaning this is just a $300 million bribe that goes right into his pocket,” Sherman alleged.

Aside from criticizing Trump over his lenient policy on the app, the Congressman has been known for his anti-crypto stance, having campaigned for a blanket ban on crypto in 2019. Sherman’s criticism of crypto centered on the position that crypto holds the potential to displace the U.S. dollar. 

In light of his stance, the Trump administration has taken a strong approach on crypto, pledging to promote and strengthen U.S. dollar stablecoins as part of its strategy to strengthen the U.S. dollar’s position and the country’s reserves. 

Meanwhile, experts were skeptical of such a relationship between Trump and the Chinese company and questioned Sherman’s allegations  

“No one wants TikTok banned, except the Israeli lobby, aka your puppet masters. Why don’t you put up a poll asking your constituents if they want the platform banned,” one said.