'Completely out of bounds': Trump ripped over $300M windfall from Chinese-backed company

13 May

U.S. President Donald Trump with Chinese President Xi Xinping in 2018 (Dan Scavino/Wikimedia Commons)

A struggling tech firm with connections to China and a reliance on the Chinese social platform TikTok has reportedly secured funding to purchase up to $300 million worth of President Donald Trump's memecoin.

The New York Times reported that GD Culture Group became on Monday the latest foreign-linked entity to capitalize on $TRUMP, Trump's cryptocurrency initiative that funnels profits directly to the Trump family.

GD Culture Group, who has only eight employees per its public filings, is said to have recorded zero revenue last year.

Former Rep. Charles Dent (R-PA), who was the chairman of the House Ethics Committee, told the Times: “Make no mistake. These foreign entities and governments obviously want to curry favor with the president.”

“This is completely out of bounds and raises all sorts of ethical, legal and constitutional issues that must be addressed," Dent added.

The group has announced plans to allocate $300 million to amass a reserve of Bitcoin and MAGA tokens. They intend to fund this acquisition through proceeds from a stock sale to an undisclosed buyer in the British Virgin Islands, a known tax haven. This investment strategy was officially confirmed in a securities filing released late Tuesday, per the report.

"The purchase would create clear ethical conflicts, enriching Mr. Trump’s family at the same time that the president tries to reach a deal that would allow TikTok to keep operating in the United States rather than face a congressionally approved ban," the Times report said.

The report further notes that in its financial disclosures, the company indicated that its subsidiary, Shanghai Xianzhui, may be subject to influence from the Chinese government, though such language is typical for Chinese firms. A purchase by GD Culture Group would mark the first known instance of a China-linked company acquiring Trump’s memecoin.

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