The controversy erupted after President Trump signed an executive order on June 19, 2025, granting TikTok another extension to operate in the U.S. until mid-September, despite ongoing congressional pressure for ByteDance to divest. Sherman publicly criticized the decision, claiming, “Chinese TikTok owners are buying $300M worth of TRUMP. Trump is giving out the tokens for free; it’s just a $300M bribe straight to his pocket.”

The allegations surfaced as the U.S. legal landscape tightens around TikTok. A January 2025 law requires TikTok to separate from Chinese parent ByteDance. Trump’s new extension marks the second deadline postponement since his first executive order, which offered a 75-day pause. Meanwhile, negotiations over the platform’s sale are ongoing, with interest from parties such as OnlyFans founder Tim Stokley’s Zoop, Reddit co-founder Alexis Ohanian (via People’s Bid For TikTok), Microsoft, and others.

The source of Sherman’s claim appears linked to GD Culture Group’s May 2025 announcement that it had created a $300 million treasury using Bitcoin and TRUMP tokens. Journalists have found no direct connection between GD Culture Group and ByteDance, although a subsidiary, Shanghai Xianzhui, reportedly maintains close ties to Chinese authorities, as reported by The New York Times.

On its official X (formerly Twitter) page, TikTok responded: “Congressman, the claim that TikTok’s owners are buying TRUMP is categorically false and irresponsible.” The company also referenced a June 2025 letter from Democrats urging Trump to act swiftly in divesting TikTok to American owners. President Trump himself has not publicly responded to Sherman’s bribery accusation.