TikTok has denied claims that its owners are buying a cryptocurrency linked to former US President Donald Trump. The denial came from the official TikTok Policy account in response to statements by Representative Brad Sherman.

Sherman, a Democrat from California, said the "Chinese owners of TikTok have announced they are buying ‘Trump Coins’ for $300 million." TikTok called the statement false and misleading.

“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 platform responded on X.

Trump Delays TikTok Ban Again

The allegations came as the Trump administration delayed enforcement of a ban or forced sale of TikTok. It was the third such delay, extending the deadline by another 90 days.

Sherman said only one extension is allowed under US law and called the latest order illegal. Sherman’s claims appeared to link TikTok to GD Culture Group, a Nasdaq-listed company that produces AI-driven content on TikTok. In May, GD Culture announced plans to invest $300 million in Trump memecoin and Bitcoin. However, GD Culture is not formally affiliated with TikTok or its parent company, ByteDance.

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TikTok Denies Crypto Purchase Allegations

Sherman described the Trump memecoin as a financial benefit to the former president. “Trump creates ‘Trump Coins’ at no cost, meaning this is just a $300 million bribe that goes right into his pocket,” he said.

TikTok’s denial was met with mixed reactions online. Some users questioned the company’s statement, but others criticized Sherman’s claims as unfounded.

Sherman has supported strict regulations on cryptocurrency. In 2019, he called for a complete ban on crypto in the US. He has often cited concerns about crypto weakening the US dollar.

Source: Finance Magnates