TikTok Denies Involvement in Alleged $300M Trump Memecoin Purchase Amid Political Backlash

The official TikTok Policy account responded Thursday via X, calling Sherman’s statements “patently false and irresponsible.” The company emphasized that the congressman’s accusations misrepresented a letter he had previously signed and bore no basis.

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

Sherman, a long-time critic of both TikTok and cryptocurrency, claimed the platform’s Chinese owners were funneling $300 million into the Trump memecoin project , calling it a political bribe disguised as a digital asset investment. “Trump creates ‘Trump Coins’ at no cost, meaning this is just a $300 million bribe that goes right into his pocket,” Sherman alleged in public remarks.

The congressman’s comments come on the heels of President Trump signing a fresh executive order to extend TikTok’s deadline to either sell its U.S. operations or face a ban. This marks the third delay, granting TikTok another 90 days. Sherman, however, argued that federal law only allows for a single extension and criticized Trump’s repeated delays as unlawful.

At the centre of Sherman’s allegations is Nasdaq-listed GD Culture Group, which announced plans in May to invest $300 million into Trump memecoin and Bitcoin. Although GD Culture creates AI-powered content for TikTok, it has no confirmed corporate affiliation with TikTok or its parent company, ByteDance.

Online reaction to Sherman’s claims was divided. Some users expressed skepticism about TikTok’s denial, while others dismissed the accusations outright. Critics questioned Sherman’s crypto knowledge, including his implication that a cryptocurrency can be created at no cost. One commentator on X accused Sherman of advancing the interests of lobbying groups, stating , “No one wants TikTok banned, except the Israeli lobby, aka your puppet masters.”

Sherman has a longstanding anti-crypto record, having previously called for a complete ban on digital currencies . His criticism is rooted in the belief that crypto undermines the dominance of the U.S. dollar.

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