TikTok has strongly refuted claims that it purchased $300 million worth of Official Trump (CRYPTO: TRUMP), the meme coin, to influence U.S. President Donald Trump.
What Happened: The social media company responded publicly on June 19 via X (formerly Twitter), stating that the accusation was "false and irresponsible," and an attempt to distort its actions.
The allegation originated from U.S. Congressman Brad Sherman, who accused TikTok's parent company, ByteDance, of making the massive crypto purchase as a bribe to Trump.
Sherman argued that since Trump reportedly received the token at no cost, any market purchases would directly benefit him financially.
TikTok countered that Sherman's reading of a recent letter was inaccurate and emphasized that no such transaction took place.
The company labeled the accusation as entirely without merit.
Also Read: Why XRP Could Be The Next Big ETF Bet And What Polymarket Traders Know That You Don’t
Why It Matters: This controversy comes just as Trump signed an Executive Order granting TikTok a 90-day extension to divest its U.S. operations or face a nationwide ban.
Critics question the legal basis for this move, noting that the original legislation only permitted a single extension period.
The TRUMP meme coin, which Trump promotes, has also raised alarms within political and crypto circles.
Analysts argue that the president’s selling a digital asset, particularly one lacking a clear purpose, in exchange for proximity or access raises serious ethical and regulatory concerns.
Watchdogs fear it could blur the lines between public office and personal financial gain. Trump and his family made more than $350 million in trading fees off the meme coin this year, according to Chainalysis.
Price Action: TRUMP has fallen nearly 40% in the past month and now trades at around $9.30, well below its peak of $73.43 reached in January, according to CoinGecko data.
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