A development that created shock waves in the Bitcoin and altcoin community came to the fore. CNHC Group, now known as Trust Reserve, found itself in a confusing situation. Here are the details…
The team behind the altcoin project is missing!
PANews has published a report on the team responsible for the issuance of the offshore RMB stablecoin CNHC. This team turned out to be missing since the afternoon of May 29. On the other hand, various sources indicate that the team members were taken away by the police. They confirm that the teams have been detained. PANews conducted a research at the corporate office located in an important building in Shanghai’s Pudong district. What they found was a sealed empty office space with a warning on its door. The seal included the statements “Forensically seized, Vandalism is strictly prohibited”
The seal was signed on May 29, 2023, raising more questions about the fate of Trust Reserve and stablecoin operations. Trust Reserve’s offerings include the Hong Kong dollar stablecoin HKDC, as well as the CNHC stablecoin, which aims to peg 1:1 with the offshore Chinese yuan. The company’s stablecoin business has yet to gain significant momentum. However, some pointed out that cross-border payment services contributed to the investigation.
received an investment of 10 million dollars
It is worth noting that CNHC has recently successfully completed its Series A+ funding round. As we reported as Kriptokoin.com, it provided an impressive investment of 10 million dollars. Therefore, this latest development came as a surprise. Names such as KuCoin Ventures, Circle, and IDG Capital were among the prominent investors in this funding round. However, it remains unclear how these investors will be affected by current events. The CNHC stablecoin showed promise in facilitating transactions in China’s crypto economy. However, that hope was dashed by the sudden disappearance of the Trust Reserve team and the subsequent police investigation. Currently, the future of stablecoins and related businesses remains uncertain.
This event marks the latest situation for the cryptocurrency market in China. The country is closely watched by industry experts for its potential consequences on its regulatory environment. China’s strict stance on cryptocurrencies is well known. And given the recent crackdown on illegal activity, it’s hardly surprising that Trust Reserve and stablecoin operations are coming under scrutiny. At this time, there is no official statement regarding the investigation or the charges faced by the detained Trust Reserve team members. As a result, the fate of the CNHC stablecoin and HKDC stablecoin issuer remains unclear. It causes concern among both investors and users.
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