New Lawsuit Exposes How Trump’s TikTok Deal Profited His Personal Backers

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New Lawsuit Exposes How Trump’s TikTok Deal Profited His Personal Backers

A new anti-corruption group has filed a lawsuit against former President Donald Trump and Attorney General Pam Bondi. They are challenging the deal that sold TikTok’s U.S. operations to investors who are closely tied to Trump.

The lawsuit, brought by the Public Integrity Project, claims the transaction goes against a law meant to prevent the spread of Chinese government propaganda and has primarily benefitted Trump’s allies. This law, signed by President Joe Biden in 2024, stated that TikTok could not operate in the U.S. unless its parent company, ByteDance, sold its American assets by a specific deadline.

However, the lawsuit argues that Trump issued an executive order granting TikTok an extension, allowing them to bypass this requirement. The Justice Department chose not to comment, while TikTok has also remained silent.

The plaintiffs, two software engineers from California, say they’ve lost money because the law hasn’t been enforced. Brendan Ballou, the CEO of the Public Integrity Project, expressed his concerns, saying the deal is harmful to TikTok users and undermines free speech. “ByteDance still controls the algorithm, which can censor content, while Oracle manages the data and can also restrict information,” he explained.

According to data from a recent survey, nearly 61% of TikTok users are worried about the platform’s censorship and data privacy issues. This has fueled discussions on platforms like Twitter and Reddit, where many users express frustration over the lack of transparency surrounding ownership and content moderation practices.

Trump’s executive order, signed last September, paved the way for the controversial deal, which involved companies like Oracle and MGX. Critics point out that these businesses have strong connections to Trump, raising concerns about potential conflicts of interest.

This lawsuit is the first action taken by the Public Integrity Project, a group aimed at tackling corruption in the U.S. Former Senator Russ Feingold, who advises the project, has emphasized the urgent need to combat corruption, highlighting that it has become an increasing threat in current U.S. politics.

For more detailed information about this situation, you can explore the Public Integrity Project.



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