Trust Reserve’s core team, responsible for issuing two stablecoins, was detained by Chinese authorities on May 29, as reported by PANews.
PANews discovered an empty office of Trust Reserve in Shanghai, sealed with a “Judicial seizure, strict non-destructive” indicating the ongoing investigation.
Trust Reserve, the company behind CNHC offshore stablecoin and HKDC stablecoin Hong Kong dollar, reportedly has a limited promotion for its stable currency business but also operates a cross-border payments business that may be impacted by the ongoing situation.
CNHC’s co-founder, Joy Cham, revealed that the company’s recent funding round was classified as Series A+, after previously raising undisclosed amounts totaling “tens of millions of dollars over two years” between March and August.
CNHC stablecoin was introduced in 2021 for applications like remittances and cross-border commercial payments, utilizing Ethereum and Conflux blockchains, with a total supply of approximately 15 million tokens (equivalent to $2 million), while Tether’s CNHT has a total supply of around 20 million tokens.
The detention of Trust Reserve’s core team and the ongoing investigation raise concerns about the stability and future prospects of CNHC and HKDC stablecoins, impacting the company’s stable currency and cross-border payments businesses, and potentially impacting investor confidence in the project.
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