Media reports on the detention of CNHC and HKDС developers in China

Media reports on the detention of CNHC and HKDС developers in China

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Author: Robert Strickland (crypto-journalist)
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Media reports on the detention of CNHC and HKDС developers in China
Chinese police detain CNHC and HKDC developers from Trust Reserve
Trust Reserve's Shanghai office was sealed by a court order

Chinese police have detained the CNHC and HKDC stablecoin developers at Trust Reserve, PANews reports. The firm's employees had stopped communicating on May 29 and now it is known that they have been detained and their families have been notified by police.

Trust Reserve (formerly CNHC Group) had been issuing CNHC stablecoin, pegged to the offshore yuan (CNH) exchange rate, and HKDC stablecoin pegged to the Hong Kong dollar.

In March, the company announced the closing of a $10 million Series A+ funding round, which included the venture capital arm of cryptocurrency exchange KuCoin, Circle, the issuer of the second-largest USDC stabler, and Beijing-headquartered investment firm IDG Capital.

The onshore yuan (CNY) is used in mainland China, while the offshore yuan (CNH) circulates outside of mainland China.
The CNY exchange rate is controlled by the People's Bank of China. CNH is regulated by the Monetary Authority of Hong Kong, its exchange rate is free, and the value fluctuates depending on the volume of purchases and sales in the international currency market.

Its tokens were issued on Ethereum and Conflux blockchains, the network behind the team with open support from the Chinese government. In 2021, Project Conflux reported a strategic partnership with Trust Reserve. Following the reported arrest of employees of that company, the Conflux native token (CFX) exchange rate fell 7%, from $0.312 to $0.289.

PANews reporters visited Trust Reserve's Shanghai office and found it sealed by court order on May 29.

The company's Stablecoin-related activities were not actually moving forward, sources said. The CoinGecko portal has no information about the coins. According to CoinMarketCap, the HKDС token was traded on decentralized platforms.

The publication's sources also said that Trust Reserve has other business related to cross-border payments, which may be related to the investigation.

 

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