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 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.