According to the latest information from PANews, employees of Trust Reserve – the group that issues Stablecoin CNH Coin (CNHC) pegged to the Chinese yuan were arrested by the police on May 29. The families of some of the group members have been informed of the incident.
PANews said the Trust Reserve's office in Pudong, Shanghai, was empty today, May 31. The main door was sealed on May 29 with the message: "Sealing order, vandalism prohibited".
Trust Reserve, formerly known as CNHC Group, is the issuer of CNHC and HKD Coin (HKDC) – pegged to the Hong Kong dollar. In mid-March, Trust Reserve raised $10 million in a funding round led by KuCoin Ventures, a subsidiary of the KuCoin exchange, along with investors such as IDG Capital and Circle Ventures, a subsidiary of KuCoin. Circle.
According to PANews, several sources revealed that Trust Reserve’s Stablecoin business has yet to scale, but the company already has cross-border payments businesses. The arrest is believed to be related to these payment activities.
Earlier in 2021, Trust Reserve launched CNHC coin overseas. CNHC co-founder Joy Cham expects to increase the coverage of CNHC coin in the near future, when it is only listed on the centralized exchange TruBit Pro.
The incident comes as Chinese provinces have just issued a white paper to promote the development of the Web3 and Metaverse field, despite the cryptocurrency bans that have yet to be lifted. Meanwhile, the Hong Kong Special Administrative Region will begin licensing qualified cryptocurrency exchanges from tomorrow, June 1. Overall, the inconsistent actions taking place in the Mainland suggest that the country has yet to define a clear trend towards the crypto sector.
A Trust Reserve representative was not immediately available for comment.
