By Michael Scott
The publication by PANews on Wednesday, May 31 confirms that Trust Reserve executives are among the individuals arrested by the Chinese police. News of the detention appeared on the local blockchain publication as the Chinese government sustains a crackdown on the digital assets industry.
Missing Trust Reserve Employees are Under Police Custody
The publication identifies Trust Reserve as the issuer of CNHC stablecoin. Further, the local media outlet indicates that the arrests come days after the Chinese government revealed an investigation of a critical Chinese yuan stablecoin issuer.
The Wednesday report by the media outlet identifies Circle Ventures and KuCoin Ventures as the leading investors within the Chinese yuan-pegged stablecoin. The report reveals that concerns for Trust Reserve probe surfaced when relatives of the firm’s employees revealed losing contact since May 29 afternoon.
Chine Police Place Trust Reserve Under Investigation for Flouting Crypto Ban
Some family members of the Trust Reserve employees confirmed receiving notification that the Chinese police were behind the multiple arrests involving CNHC staff.
The blockchain media outlet’s report revealed that the Trust Reserve’s headquarters in Pudong remained deserted on Wednesday, May 31. The entry to the Shanghai-based office has remained sealed starting Monday, May 29. Besides, the authorities have announced that the site is under judicial seizure. Further, the notice warns against vandalism of the office.
Trust Reserve is behind the Chinese CNHC stablecoin pegged to the yuan. The firm operated previously as CNHC Group. Also, the PANews report identifies that the Trust Reserve is behind the stablecoin currency HKDC which is pegged to the Hong Kong dollar.
Staging of the multiple arrests is bound to affect its acceptability amongst stablecoin users, with the Trust Reserve continuity of operations becoming uncertain.
The detention of the executives and workers in the Shanghai office delivers a big blow to the CNHC stablecoin. It came barely two months when Trust Reserve concluded a funding round where it realized $10 million in March 2023.
The round leveraged the stewardship of KuCoin Ventures. The venture capital is a branch of the KuCoin crypto exchange. The round attracted multiple investors, among them Circle Ventures and USD Coin investment subsidiary. Also, IDG Capital, a firm that claims investment in KuCoin, had an activity input during the fundraising process.
Investigations Likely to Delay CNHC Expansion Plan
A review of CNHC’s journey, as outlined by its co-founder Joy Cham confirms Trust Reserve began operating CNHC as an offshore yuan-based stablecoin in 2021. The executive revealed plans to increase the stablecoin exposure to various regions and crypto exchanges.
Cham confirmed plans to expand beyond the sole crypto exchange – TruBitPro. Data from the CoinMarketcap indicates that it only lists on the centralized TruBit Pro. Plans to expand beyond the centralized exchange into the decentralized trading platforms. Trust Reserve representative is yet to offer a formal update on the multiple assets and office seizure by the Chinese police.
CNHC Market Outlook
A review of the market performance shows that the total market capitalization of CNHC estimates at $703,098, with the daily trading volume down by 12.4% to approximately $320,482. The Coinmarketcap data further illustrates that CNHC has tested a low of $0.1392, though it had earlier realized a daily high of $0.1419. With news of staff arrests, monitoring the yuan-pegged stablecoin performance is necessary.
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