CNHC Stablecoin Issuer Taken Into Custody by Chinese Police

Mystery Surrounds CNHC Stablecoin Issuer

The issuer of the CNHC stablecoin has reportedly been detained by Chinese authorities, according to local publication PANews. The company, now renamed Trust Reserve, has been the subject of intense speculation and concern since its team went missing on the afternoon of May 29th. 

As investigations unfold, it has been discovered that the company's office located in a building in Shanghai Pudong was found empty. A seal bearing the words “Judicial seizure, strictly no vandalism," dated May 29, 2023, was affixed to the door. 

The Trust Reserve is known for issuing the CNHC stablecoin, pegged 1:1 to the offshore Chinese renminbi (RMB). Additionally, the company offers another stablecoin, the Hong Kong dollar pegged HKDC. Even though the stablecoin business had not been extensively publicized, Trust Reserve was involved in various cross-border payment initiatives potentially related to the current case. 

An investment round of $10 million by prominent investors, including KuCoin Ventures, Circle, and IDG Capital, was concluded in March by the stablecoin issuer. The company had approximately 60 employees at the time and had plans to expand its workforce. 

Interestingly, these developments coincide with rumors circulating about the potential detention of the Multichain core team in China. The protocol has experienced partial downtime, and there has been a lack of updates from the core team for over a week.

As this story continues to unfold, the impact on the stability of CNHC and the broader implications for the cryptocurrency industry remains uncertain.