TikTok has publicly denied allegations that it bought $300 million worth of TRUMP memecoins to sway US President Donald Trump.
The company addressed the claims on June 19 in a post on X, labeling the accusation “false and irresponsible” and aimed at misrepresenting its actions.
The statement followed comments by US Congressman Brad Sherman, who suggested that TikTok’s parent company, ByteDance, purchased a large volume of TRUMP tokens. He claimed the alleged transaction amounted to a direct bribe to President Trump.
Sherman argued that since Trump created the token at no cost, any purchases funneled financial benefits straight to him.
TikTok dismissed Sherman’s narrative and highlighted that his interpretation of a recent letter was misleading. The company stressed that no such transaction had occurred and described the allegations as baseless.
The timing of the accusation coincides with a new Executive Order from President Trump, granting TikTok an additional 90 days to finalize the sale of its US operations or risk a nationwide ban.
Critics argue that the President lacked legal grounds to extend the deadline, citing the initial law passed by Congress that allowed for only one extension.
Trump’s crypto ties trigger ethics concern
Beyond TikTok, the TRUMP memecoin itself is drawing scrutiny from the industry.
The token, promoted by the Trump family, has sparked growing concerns over conflicts of interest. Critics warn that a president with direct or indirect ties to digital assets could face serious questions about ethics, transparency, and foreign influence.
Several US lawmakers and nonprofit watchdogs have expressed concern over the potential misuse of political office for personal financial gain, especially through tokens with no clear use case or underlying value.
Meanwhile, the TRUMP memecoin continues to trade far from its all-time high and faces consistent sell pressure. According to data from CryptoSlate, the token has fallen over 34% in the past month.
As of press time, it was trading around $9.43, down significantly from its January all-time high of $44.28.
Mentioned in this article
