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In a new operation, the Chinese government once again has targeted actors in the cryptocurrency industry. Most recently, employees of Trust Reserve, the issuer of a large stablecoin pegged to the Chinese yuan, were arrested by Chinese police, while the issuer’s office was closed down.
Trust Reserve’s Office Sealed and Closed
According to PANews, a local blockchain-focused news site, on May 31, 2023, the employees of Trust Reserve, which issues the CNH Coin (CNHC) stablecoin pegged to the Chinese yuan, were arrested by the Chinese police. The report mentions that Trust Reserve’s employees have been unreachable since May 29 due to numerous arrests. It is reported that some employees’ family members have been informed about the detentions.
Furthermore, PANews reported that Trust Reserve’s office in Pudong, Shanghai, was empty as of May 31. The office door was seen sealed on May 29 with a note stating, “A judicial seizure has been made, absolutely no vandalism.”
The Company also Issued the HKD Coin (HKDC) Pegged to the Hong Kong Dollar
Formerly known as the CNHC Group, Trust Reserve is also known for issuing the HKD Coin (HKDC), pegged to the Hong Kong dollar, along with the CNHC stablecoin.
Trust Reserve had made headlines in March when it received a $10 million investment in a funding round led by KuCoin Ventures, a VC arm of the large cryptocurrency exchange KuCoin. Other prominent investors in the funding round included KuCoin’s investor IDG Capital and Circle Ventures, an investment subsidiary of Circle, the issuer of USD Coin (USDC).
Joy Cham, a co-founder of CNHC, had previously stated in an interview with Cointelegraph that Trust Reserve launched the offshore Chinese yuan stablecoin CNHC in 2021. According to data obtained from CoinMarketCap, the company was preparing to make moves to increase the use of the stablecoin in the near future, as it was only listed on a central exchange, TruBit Pro.
