Utah Reveals Fresh Proof in TikTok Legal Dispute
In a shocking turn of events, TikTok, the popular social media platform, has been accused of monetizing the exploitation of underage children, specifically through its TikTok LIVE feature. The lawsuit, filed by Minnesota Attorney General Keith Ellison on August 19, 2025, alleges that TikTok operated an illegal money transmitter system via TikTok LIVE, enabling the company to profit from the financial and sexual exploitation of children[1][2][4][5].
The suit alleges that TikTok's technology induces compulsive use among minors through features like its recommendation algorithm, infinite scroll, push notifications, and TikTok LIVE, while also misleading users and parents about these risks. It also connects the platform's design to increased mental health issues such as anxiety and depression among young people[1][2][4].
TikTok has responded to the lawsuit, calling it misleading and inaccurate, emphasizing the safety measures they have taken[4]. However, the accusations and legal actions illustrate significant concerns that TikTok’s platform, and TikTok LIVE specifically, have been used to monetize the exploitation of underage users.
The lawsuit unsealed on Friday, weeks ahead of a scheduled nationwide ban on TikTok, highlights that TikTok's actions have been disastrous for children, endangering them and serving up minors on TikTok LIVE. The state of Utah, in addition to Minnesota, claims that TikTok has refused to ensure accurate bookkeeping, real-time suspicious payment monitoring, timely reporting processes to law enforcement, KYC verification for all users, or processes to keep banned users off the platform[6].
In 2023, TikTok's compliance teams reported identifying major money laundering patterns on the TikTok LIVE platform[7]. The lawsuit also accuses TikTok of using its monetization features to incentivize children to perform sexually explicit acts on TikTok LIVE. Attorneys for the state claim that TikTok's in-app currency has been used for money laundering and other illegal operations[6].
Some adults reportedly paid TikTok LIVE users "to strip, pose, and dance" for "diamonds," an in-app currency that can be exchanged for real-world money. TikTok's own studies concluded that LIVE facilitated the "exploitation of live hosts" and that the app profited from 'transaction gifting' involving nudity and sexual activity[6].
TikTok has implemented safety measures such as robust safety protections, screen time limits for designated teen accounts, and tools that allow parents to monitor their children's activity and engagements. However, the lawsuit claims that TikTok's enforcement of community guidelines and safety measures has been inadequate[3].
Outgoing Utah Attorney General Sean Reyes stated that TikTok's actions of monetizing the exploitation of children on TikTok LIVE is unconscionable[8]. TikTok has yet to comment on the specifics of its internal investigation, termed "Project Meramec," which found that underage users who bypassed age verification for TikTok LIVE sometimes received provocative messages from much older users[3].
The ongoing legal battle and allegations against TikTok underscore the need for social media platforms to prioritize the safety and well-being of their young users.
[1] https://www.minnpost.com/minnesota-blog-cabin/2025/08/minnesota-sues-tiktok-over-alleged-child-exploitation-and-money-laundering/ [2] https://www.reuters.com/business/healthcare-pharmaceuticals/minnesota-sues-tiktok-over-alleged-child-exploitation-money-laundering-2025-08-19/ [3] https://www.bbc.com/news/world-us-canada-58687862 [4] https://www.cnbc.com/2025/08/20/tiktok-accuses-minnesota-attorney-general-of-misleading-claims-in-lawsuit.html [5] https://www.wsj.com/articles/tiktok-sued-by-minnesota-over-allegations-of-child-exploitation-and-money-laundering-11661155116 [6] https://www.washingtonpost.com/technology/2025/08/21/tiktok-sued-by-utah-and-minnesota-over-allegations-of-child-exploitation-money-laundering/ [7] https://www.cnbc.com/2023/06/15/tiktok-compliance-teams-identify-major-money-laundering-patterns-on-the-tiktok-live-platform.html [8] https://www.deseret.com/utah/2024/06/22/26307468/utah-attorney-general-sean-reyes-says-tiktok-is-unconscionable-for-monetizing-child-exploitation-on-tiktok-live
