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Offshore RMB Stablecoin CNHC’s Issuance Team Taken Away by Chinese Police for Investigation

In a development that has sent shockwaves through the cryptocurrency community, the CNHC Group, now known as Trust Reserve, has found itself embroiled in a perplexing situation.

PANews has exclusively learned that the team responsible for the issuance of the offshore RMB stablecoin CNHC has gone missing since the afternoon of May 29. Disturbingly, several sources have confirmed that the team members were taken away and detained by the police, leaving their families distraught.

PANews recently conducted an investigation at the company’s office, located in a prominent building in Shanghai’s Pudong district. What they discovered was an empty office space with a seal affixed to the door, bearing the stern warning: “Judicial Seizure, Strictly No Vandalism.” The seal was signed on May 29, 2023, raising further questions about the fate of Trust Reserve and its stablecoin operations.

Trust Reserve’s offerings include the CNHC stablecoin, which aimed to maintain a 1:1 peg with the offshore Chinese yuan, as well as the Hong Kong dollar stablecoin, HKDC. Although the company’s stablecoin business had not gained significant traction, insiders revealed to PANews that its cross-border payment services might have contributed to the ongoing investigation.

This latest development comes as a surprise, considering that CNHC recently announced the successful completion of a Series A+ financing round, securing an impressive $10 million in investments. Renowned names such as KuCoin Ventures, Circle, and IDG Capital were among the prominent investors in this funding round. However, it remains uncertain how these investors will be impacted by the current turn of events.

The CNHC stablecoin had shown promise in facilitating transactions within China’s digital economy. However, with the sudden disappearance of the Trust Reserve team and the subsequent police investigation, the future of this stablecoin and its associated businesses hangs in the balance.

This incident is being closely monitored by industry experts due to its potential ramifications on the stability and regulatory environment of the cryptocurrency market in China. With China’s firm stance on digital currencies and recent crackdowns on illicit activities, it is not entirely surprising that Trust Reserve and its stablecoin operations have come under scrutiny.

At present, no official statement has been released by the authorities regarding the investigation or the charges faced by the detained Trust Reserve team members. Consequently, the fate of the CNHC stablecoin and the HKDC stablecoin issuer remains uncertain, causing concern among investors and users alike.

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