Tiny Company With China Ties Announces Big Purchase of Trump Cryptocurrency

A technology company with difficulties that has links with China and depends on Tiktok made an unusual announcement this week. He had secured funds to buy up to $ 300 million of $ Trump, the so -called Memecoin marketed by President Trump.

GD Culture Group, a company that lies in the stock market with a Chinese subsidiary, has only eight employees, its sample of public presentations and registered zero revenues last year of an electronic commerce business that operates on Tiktok, the application of video exchange of videos based in Chinese.

But on Monday, GD Culture Group became the last foreign business to take advantage of Trump’s cryptographic company, which channels profits directly to the Trump family and has generated conflicts of interests that have alarmed ethics experts. (Memecoras such as $ Trump are a type of cryptocurrency based on an online joke or a mascot of celebrities and have traditionally not had any utility beyond speculation).

In his statement, GD Culture Group, which is marketed at Nasdaq, said it would spend $ 300 million in a storage or Bitcoin and $ Trump, using processed from a sale of shares to an unidentified entity in the British Virgin Islands, a popular tax. He confirmed that the investment plan in a presentation of values ​​on Tuesday night.

The purchase would create clean ethical conflicts, enriching Mr. Trump’s family at the same time that the president tries to reach an agreement that allows Tiktok to continue operating in the United States instead of facing a prohibition approved by Congress.

The announcement also shows how investors around the world, including some who do not have a virtual public footprint, have clung to the president’s cryptocurrencies to boost their own commercial perspectives.

Just affirming a connection with Mr. Trump’s business can quickly generate the profile of a company. The actions in difficulties of GD Culture Group increased 12 percent on Monday, before losing those profits the next day.

“Do not be mistaken. These foreign entities and governments obviously because for the president of the president,” said former representative Charles Dent, a Republican of Pennsylvania who was the president of the Chamber Ethics Committee. “This is completely out of the limits and raises all kinds of ethical, legal and constitutional issues that must be addressed.”

Investors in foreign countries have rushed to stock up on the $ Trump currency since it reached the market in January. Some have explicitly declared that they expected to use their purchases to influence Trump.

GD Culture Group was less clear about his intentions. In his statement, the company said he wanted to “improve his balance sheet with high -performance scalable digital assets.”

But any purchase of GD Culture Group would be the first known example of a company linked to China that bought Trump’s memecoin. In its financial revelations, the company has indicated that its subsidiary, Shanghai Xianzhui, could be influenced by the demands of the Chinese government, thought it is not unusual for a Chinese company.

“The Chinese government can intervene or influence its operations at any time,” said the company in an annual report submitted in March.

In recent weeks, the Trump family has faced an intense reaction in Washington about their business with foreign countries.

On the floor of the Senate on Tuesday, Senator Christopher S. Murphy, a connecticut Democrat, spent 20 minutes walking through the various sources of money abroad that pours the business of the Trump family, including the Memecoin, a real estate agreement inviting an agreement inviting a treatment that invites a Crypto treatment with a company backed by the United Arab Emirates.

“If a mayor of a small town sold meetings in the City Council for a thousand dollars, he will run out of the city on a railroad, but that is exactly what Donald Trump is doing in the Middle East and around the world,” Murphy said.

Representatives of the White House, the Trump and GD Culture Group organization did not respond to requests for comments.

Trump began selling the Trump currency three days before its inauguration, one of several cryptographic companies that he and his children have followed. The price letter of the currency arose, then crashed with the same speed, costing investors billions of dollars.

Last month, Mr. Trump and his business partners announced that the 220 currency buyers would be invited to dinner with the president in his golf club in Virginia, which caused another frantic trade round that more and adhered to the Trump family. An analysis of The New York Times and the Forensic Nansen crypto firm discovered that many of the currency buyers were based abroad in countries such as Mexico, Singapore and Australia.

According to Federal Law, foreign investors are prohibited from donating a political campaign or an inaugural fund of a president. But Trump’s cryptocurrencies have sacrificed a new way for these foreign buyers to support him financial.

In April, a shipping firm based in Mexico, Fr8tech, announced that it would spend $ 20 million in Trump Memecoin as a way to “advocate for fair trade, balanced and free will between Mexico and the United States”

The GD Culture Group statement did not mention any policy objective. Xiaojian Wang, the executive director, said the company was adopting “industrial transformation” through cryptocurrencies and moving to “strengthen our financial base.”

It was not clear how exactly GD Culture Group had secured the funds to buy hundreds of millions of cryptography. In its statement, the company did not reveal any information about the entity in the British Virgin Islands that agreed to buy their shares.

In his presentation before the SEC on Tuesday, GD Culture Group confirmed his plans to buy $ Trump, but again any information about the entity that finances the purchase.

Historically, the British Virgin Islands have been a favorite jurisdiction so that injection abroad maintains confidentiality, because it is easy to establish a company with ghost there.

Matthew Goldstein Contributed reports.