US Congressman Brad Sherman ignited a fiery political controversy, accusing the Chinese owners of TikTok of purchasing $300 million worth of the TRUMP meme coin as a bribe.
TikTok has faced regulatory challenges in multiple jurisdictions and has pushed back, denying the politicians’ claims.
Congressman Accuses TikTok of $300 Million TRUMP Coin Bribe
Sherman’s comments came as US President Donald Trump issued an executive order on Thursday, granting a 90-day extension for TikTok’s US divestiture deadline. Trump pushed the enforcement date to September 17, 2025.
This order gives the Chinese-owned social media app, which has 170 million US users, until September to find a buyer lest it be banned in the US. It marks the third time the president has postponed this deadline, the previous one being June 19.
Trump’s decision has attracted controversy, with Congressman Sherman alleging that the president’s move was meant for personal profit.
According to Sherman, the decision incentivized the Chinese owners of TikTok to buy TRUMP Coins worth $300 million. Given that token creation does not incur any cost, the Congressman indicates that the purchase is merely a bribe.
From a legal standpoint, Congressman Sherman claims the extension violates the law, which allows only one single extension. In his opinion, this renders Trump’s postponement illegal.
“The Act permits the President to grant a one-time extension of no more than 90 days with respect to the prohibitions’ 270-day effective date if the President makes certain certifications to Congress regarding progress toward a qualified divestiture,” read an excerpt in a January filing.
Meanwhile, others like Mark Warner, a Democratic senator and the vice-chair of the Senate intelligence committee, accuse the Trump administration of “flouting the law and ignoring its national security findings about the risks posed by a PRC-controlled TikTok.”
TikTok Pushes Back on Bribe Allegations
TikTok’s official policy account quickly responded to the claims, strongly rejecting the allegations. The team called the allegations false and irresponsible, articulating that the Congressman contradicts a letter he signed in May.
As of this writing, no on-chain evidence currently supports the Congressman’s $300 million Trump Coin claim. Notwithstanding, this development adds another layer of scrutiny to TikTok’s ongoing regulatory troubles.
Six months ago, BeInCrypto reported that TikTok was potentially facing a UK Financial Conduct Authority (FCA) probe over allegations of operating an unregistered crypto exchange.
The investigation reportedly centered on whether TikTok’s platform was used to promote or facilitate crypto transactions without proper oversight.
Despite its legal woes, the platform has drawn the interest of Reddit, which was considering acquiring TikTok’s US operations. As BeInCrypto reported, Reddit was exploring a plan to integrate the platform with blockchain technology. This idea highlights TikTok’s central role in the growing overlap between Web2 and Web3 platforms.
The TRUMP meme coin has become prominent over the past year, fueled by speculation, celebrity endorsements, and links to the US president. Amid these developments, the token is up by a modest 0.7% in the last 24 hours.
While Trump has publicly acknowledged the token, critics argue that its commercialization and any suggestion of foreign purchases raise serious conflict-of-interest questions.
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