The Chinese government continues to crack down on the cryptocurrency industry with a new investigation targeting a major Chinese yuan stablecoin issuer.
Employees of Trust Reserve — the issuer of the Chinese yuan-pegged stablecoin CNH Coin (CNHC) — have been detained by Chinese police, the local blockchain publication PANews reported on May 31.
According to the report, Trust Reserve employees have been out of reach since the afternoon of May 29 due to multiple arrests. Some employees’ family members have reportedly been notified about the detentions.
PANews also learned that Trust Reserve’s office in Pudong, Shanghai was empty as of May 31. The door was sealed on May 29, with a notice saying, “Judicial seizure, strictly no vandalism.”
Trust Reserve, formerly known as CNHC Group, issues the CNHC stablecoin and Hong Kong dollar-pegged HKD Coin (HKDC).
In March 2023, Trust Reserve secured $10 million in funding in a round led by KuCoin Ventures, the venture capital arm of the major cryptocurrency exchange, KuCoin. Other prominent investors in the round included KuCoin’s investor, IDG Capital, and Circle Ventures, the investment subsidiary of the USD Coin (USDC) issuer.
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CNHC co-founder Joy Cham previously told Cointelegraph that Trust Reserve launched its offshore yuan-pegged stablecoin, CNHC, in 2021. The firm was expecting to increase the exposure of the stablecoin in the near future, as it is only listed on one 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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