TikTok executives knew that hundreds of thousands of minors were accessing its LIVE product and that its age restrictions were ineffective, Utah officials claim. They say the company’s own investigation recognized that children were being sexually exploited, and that TikTok decided not to do anything about it.
The allegations include details from TikTok’s internal investigation, what the company called “Project Meramec,” which revealed that TikTok knew about the problem. The charges are just coming to light because previously redacted -- or sealed -- portions of a complaint are being made public.
“Utah’s unredacted complaint demonstrates how clearly depraved TikTok’s business model is. Such a blatant disregard for the safety of our children on the platform, not to mention profiting from their exploitation, shocks the conscience and proves that TikTok harms children,” said Utah Governor Spencer Cox. in a news release.
As of January 5, 2025, TikTok's future in the United States is uncertain due to legal challenges and potential regulatory actions. In April 2024, Congress passed a law which mandates that ByteDance, TikTok's Chinese parent company, divest its U.S. assets by January 19, 2025, or face a nationwide ban. The company has appealed to the Supreme Court, which has agreed to hear the case.
Users exploited
The less-redacted complaint, which is being filed with permission of Judge Coral Sanchez of the Utah Third District Court, reveals allegations that highlight concerns that TikTok operates an open-door policy allowing predators and criminals to exploit users, especially children.
Additionally, it alleges that TikTok pockets as much as half of every money exchange it brokers on its LIVE platform. Through the coins and gifts, some of which take the form of plush toys targeted to very young minors, TikTok reaps exorbitant profits, the complaint alleges.
TikTok’s internal investigation and the admissions of its employees document how TikTok LIVE allows adults to pay young users to strip, pose, and dance provocatively for “diamonds,” which can be cashed out for real money, Utah officials said.
TikTok’s alleged profiteering extends beyond child sexual exploitation. The complaint alleges TikTok performed another internal investigation called “Project Jupiter” that concluded that its livestream feature, along with its virtual currency, has enabled criminals to launder money, sell drugs, and fund terrorist groups, such as the Islamic State of Iraq and Levant (ISIL).
“Sadly, social media is too often the tool for exploiting America’s young people. Online exploitation of minors has exploded, leading to depression, isolation, and other tragedies such as suicide, addiction, and trafficking," said Utah Attorney General Sean Reyes.
"More of TikTok’s shocking conduct will now be public through this unredacted complaint. And with discovery, the full extent of its culpability can be demonstrated at trial,” Reyes said
Money laundering allegations
The complaint also alleges that TikTok’s algorithm favors and boosts live feeds that receive virtual currency gifts. As the complaint alleges, those feeds with a high currency exchange involve money laundering, sexual content, or both.
"As a result, this dangerous content is prioritized and featured at the top of user feeds and labeled as 'TopLives.' Thus, new or curious children on the platform will fall into a hazardous community with no warning," Reyes said.
This case marked the second lawsuit by the state against TikTok. In October 2023, Utah filed a consumer protection case against TikTok for intentionally designing and implementing addictive features aimed at hooking young users into endless use of its app.
“Since the state’s first complaint against TikTok, we have had to fight tooth and nail to get this information from them, said Margaret Woolley Busse, Executive Director of the Utah Department of Commerce. “Now that the court has allowed us to make more of the Division’s complaint public, it shows just how TikTok has been lacking in any moral guardrails and how they have knowingly put our kids at risk.”
Situation is fluid
President-elect Donald Trump has requested a delay in enforcing the law banning TikTok until after his inauguration on January 20, to allow time for a political solution. The U.S. Department of Justice has opposed this request, emphasizing national security concerns.