Chinese police detain CNHC stablecoin issuer

The Chinese government is taking further action against the cryptocurrency industry by investigating a major issuer of a Chinese yuan stablecoin.

According to local blockchain publication PANews, employees of Trust Reserve, which issues the Chinese yuan-pegged stablecoin CNH Coin (CNHC), have been detained by Chinese police as of May 29. The report claims that some employees’ family members have been notified about the detentions. Trust Reserve’s office in Pudong, Shanghai was reportedly empty as of May 31, with a notice on the door stating “Judicial seizure, strictly no vandalism.”

Trust Reserve, previously known as CNHC Group, also issues the Hong Kong dollar-pegged HKD Coin (HKDC). In March 2023, the company secured $10 million in funding in a round led by KuCoin Ventures, with other investors including IDG Capital and Circle Ventures. Trust Reserve co-founder Joy Cham previously told Cointelegraph that the company launched its offshore yuan-pegged stablecoin, CNHC, in 2021, and was planning to increase its exposure in the near future.

Trust Reserve and its representatives have not yet commented on the situation.

This article will be updated as more information becomes available.

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