The Chinese government continues to crack down on the cryptocurrency sector with a new investigation targeting a major issuer of Chinese yuan stablecoins.
Chinese police have detained Trust Reserve employees, the issuer of the Chinese stationary currency CNH Coin (CNHC)which is pegged to the yuan, according to reported local blockchain publication PANews on May 31.
According to the news, Trust Reserve employees have been silent since the afternoon of May 29 due to multiple arrests. It appears that the relatives of some employees have been notified of the arrests.
PANews has also learned that Trust Reserve’s office in Pudong, Shanghai, had been empty since May 31. The door was sealed on May 29, with a notice reading: “Judicial embargo, strictly no vandalism.”
Trust Reserve, formerly known as CNHC Group, issues the CNHC stablecoin and coin HKD Coin (HKDC) parity in Hong Kong dollars.
In March 2023, Trust Reserve secured $10 million in funding in a round led by KuCoin Ventures, the venture capital arm of the popular cryptocurrency exchange KuCoin. Other notable investors in the round included KuCoin investor IDG Capital and Circle Ventures, the investment affiliate of the USD Coin issuer (USDC).
CNHC co-founder, Joy Cham previously told Cointelegraph that Trust Reserve launched its yuan-pegged offshore stablecoin, CNHC, in 2021. The company hoped to increase the exposure of the stablecoin in the near future, as only quote on a centralized exchange, TruBit Pro, according to data from CoinMarketCap.
Trust Reserve and its representatives did not immediately respond to Cointelegraph’s request for comment. This article will be updated pending new information.
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