Small company with China Ties announces a large purchase from Trump Cryptocurrency

A struggling technology company that has ties with China and trusts Tiktok made an unusual announcement this week. It had provided financing to buy no less than $ 300 million from $ Trump, the so -called memecoin brought on the market by President Trump.

GD Culture Group, a listed company with a Chinese subsidiary, has only eight employees, its public archives showAnd last year recorded zero income from an e-commerce company that is active on Tiktok, the Chinese app for sharing videos.

But on Monday, the GD culture group seized the newest foreign activities that Mr Trump’s Crypto company took up, which canalize profit directly to the Trump family and generated interest conflicts that ethical experts have alerted. (Memecoins such as $ Trump are a kind of cryptocurrency based on an online joke or famous mascot and have traditionally had no use than speculation.)

In his statement, GD Culture Group, which is traded on the Nasdaq, that it would spend the $ 300 million on a stock of Bitcoin and $ Trump, with the help of a yield of a stock sale to an unnamed entity on the British Virgin Islands, a popular tax paradise. It confirmed that investment plan in a Application request Late Tuesday.

The purchase would cause clear ethical conflicts, which enriches Mr Trump’s family at the same time that the president tries to reach a deal with which Tiktok would continue to operate in the United States instead of getting a congress approved.

The announcement also shows how investors around the world, including some who have virtually no public footprint, have retained the president’s crypto companies to stimulate their own business prospects.

Just the claiming of a connection with Mr.’s company. Trump can quickly increase the profile of a company. The wrestling shares of GD Culture Group rose by 12 percent on Monday before they lost that profit the next day.

“Make no mistake. These foreign entities and governments are clearly preferred by the president,” said former representative Charles Dent, a Republican of Pennsylvania who was chairman of the House Ethics Committee. “This is completely outside the borders and evokes all kinds of ethical, legal and constitutional issues that must be tackled.”

Investors abroad have hurried to hit the $ Trump Munt since it came on the market in January. Some have explicitly stated that they hoped to use their purchases to influence Mr Trump.

GD culture group was less clear about its intentions. In his statement, the company said it “wanted to improve his balance with powerful, scalable digital assets.”

But every purchase by the GD culture group would be the first known example of a China-connected company that buys Mr. Trump’s memecoin. In its financial disclosure, the company noted that its subsidiary, Shanghai Xianzhui, can be influenced by demands from the Chinese government, although that is not an unusual formulation for a Chinese company.

“The Chinese government can intervene at any time or influence its activities,” the company said in one Annual report submitted in March.

In recent weeks, the Trump family has confronted with an intensifying return in Washington about his business transactions with abroad.

On the Senate floor on Tuesday, Senator Christopher S. Murphy, Democrat van Connecticut, spent 20 minutes walking Separate $ 2 billion crypto -deal Supported by the United Arab Emirates with a company.

“If a mayor of a small town were to sell meetings in the town hall for a thousand dollars, he would run into the city on a track, but that is exactly what Donald Trump does in the middle and all over the world,” said Mr. Murphy.

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

Mr. Trump began to sell the $ Trump -Munt three days before his inauguration, one of the many crypto companies that he and his sons have pursued. The price of the coin rose briefly and then stuck down just as quickly and cost investors billions of dollars.

Last month, Mr. Trump and his business partners announced that the top 220 buyers of De Munt would be invited for a dinner with the president in his golf club in Virginia, filling Another round of hectic trade that the Trump family further enriched. An analysis of the New York Times and the Crypto Forensic Company Nansen found That many of the buyers of the coins were located abroad in countries such as Mexico, Singapore and Australia.

According to federal legislation, foreign investors are not allowed to donate to a political campaign or the inaugural fund of a president. But Mr. Trump’s crypto companies have offered a new path for these overseas buyers to support him financially.

In April, a shipping company FR8Tech, based in Mexico, announced that it would spend $ 20 million on Mr. Trump’s memecoin as a way to “argue for fair, balanced and free trade between Mexico and the US”

The statement of GD Culture Group has not mentioned any policy objectives. Xiaojian Wang, the Chief Executive, said that the company embraced “industrial transformation” by cryptocurrencies and switched to “Strengthening our financial foundation”.

It was unclear how exactly GD Culture Group had protected the financing to buy hundreds of millions of dollars in crypto. In his statement, the company has not unveiled information about the entity on the British Virgin Islands that agreed to buy its shares.

In his application at the SEC on Tuesday, GD Culture Group confirmed his plans to buy $ Trump – but again all information about the entity omitted that the purchase finances.

Historically, the British Virgin Islands has been a favorite jurisdiction for foreign investors who want to retain confidentiality because it is easy to set up a Shell company there.

Matthew Goldstein contributed reporting.