According to the news agency PANews, the core team of Trust Reserve, formerly known as CNHC Group and issuing two stablecoins, was detained by police in China on May 29.
Team of Stablecoin Issuer Trust Reserve Detained by Police in China
Some family members have just been made aware of the situation. When the news agency visited the company's office, it found a notice of judicial seizure indicating legal action had been taken.
Trust Reserve is known for issuing one Chinese Yuan (CNY)-backed stablecoin and another Hong Kong Dollar (HKD)-backed stablecoin. Stablecoins are designed to provide stability and enable smooth transactions in the cryptocurrency ecosystem.
Earlier in March, Trust Reserve successfully raised $10 million in a Series A+ funding round with the participation of key investors such as KuCoin Ventures, Circle, and IDG Capital.
The funding round was aimed at furthering the project and expanding its operations. At the time, the company had a workforce of around 60 employees and was planning to increase staff to support its growth trajectory.
The detention of the Trust Reserve core team raises concerns about the future of the stablecoin project and its impact on investors and users.
Regulatory scrutiny and legal challenges are not uncommon in the cryptocurrency space, and such incidents can destabilize and destabilize projects, especially when core team members are directly involved.
The industry will closely monitor developments regarding Trust Reserve and Multichain as the results may have broader implications for the stability and regulatory environment of the cryptocurrency market in China and beyond.
*Not investment advice.