US Congressman Brad Sherman ignited a fiery political controversy, accusing the Chinese language homeowners of TikTok of buying $300 million price of the TRUMP meme coin as a bribe.
TikTok has confronted regulatory challenges in a number of jurisdictions and has pushed again, denying the politicians’ claims.
Congressman Accuses TikTok of $300 Million TRUMP Coin Bribe
Sherman’s feedback got here as US President Donald Trump issued an govt 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 provides the Chinese language-owned social media app, which has 170 million US customers, till September to discover a purchaser lest it’s banned within the US. It marks the third time the president has postponed this deadline, the earlier one being June 19.
Trump’s determination has attracted controversy, with Congressman Sherman alleging that the president’s transfer was meant for private revenue.
In keeping with Sherman, the choice incentivized the Chinese language homeowners of TikTok to purchase TRUMP Cash price $300 million. Provided that token creation doesn’t incur any price, the Congressman signifies that the acquisition is merely a bribe.
From a authorized standpoint, Congressman Sherman claims the extension violates the legislation, which permits just one single extension. In his opinion, this renders Trump’s postponement unlawful.
“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,” learn an excerpt in a January submitting.
In the meantime, 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 Again on Bribe Allegations
TikTok’s official coverage account rapidly responded to the claims, strongly rejecting the allegations. The staff referred to as the allegations false and irresponsible, articulating that the Congressman contradicts a letter he signed in Might.
As of this writing, no on-chain proof at the moment helps the Congressman’s $300 million Trump Coin declare. However, this improvement provides one other layer of scrutiny to TikTok’s ongoing regulatory troubles.
Six months in the past, BeInCrypto reported that TikTok was probably dealing with a UK Monetary Conduct Authority (FCA) probe over allegations of working an unregistered crypto trade.
The investigation reportedly centered on whether or not TikTok’s platform was used to advertise or facilitate crypto transactions with out correct oversight.
Regardless of its authorized woes, the platform has drawn the curiosity of Reddit, which was contemplating buying TikTok’s US operations. As BeInCrypto reported, Reddit was exploring a plan to combine the platform with blockchain expertise. This concept highlights TikTok’s central position within the rising overlap between Web2 and Web3 platforms.
The TRUMP meme coin has change into outstanding over the previous 12 months, fueled by hypothesis, superstar endorsements, and hyperlinks to the US president. Amid these developments, the token is up by a modest 0.7% within the final 24 hours.
Whereas Trump has publicly acknowledged the token, critics argue that its commercialization and any suggestion of international purchases elevate severe conflict-of-interest questions.
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