Chinese police arrested team behind the CNHC Stablecoin supported by Yuan: Report

Chinese police arrested team behind the CNHC Stablecoin supported by Yuan: Report

According to a report by the local media Panews, the core team of the Trust Reserve was arrested at noon on May 29 and their family members were notified.

police arrest CNHC exhibition team

representatives of Panews visited the company's office in Pudong, Shanghai, and found a free workplace with a seal on the door: "Judicial confiscation, strictly no vandalism". The message was signed on May 29th.

While the reason for the arrest remains unclear, familiar people of the local news agency said with the matter that the cross -border payment transaction from Trust Reserve could be the reason.

Trust Reserve has two stable coins-a asset covered by the offshore chinese Yuan (CNHC) and a token covered by the Hong Kong dollar (HKDC). The StableCoin issue recently secured $ 10 million for CNHC in a financing round led by Kucoin Ventures, the investment branch of the cryptocurrency exchange Kucoin based on the Seychelles.

Circle Ventures, the investment department of the USDC stable issuer Circle, and the multinational investment company IDG Capital.

CNHC, supported by the permissible Layer 1 blockchain network Conflux, is linked 1: 1 to the offshore Yuan (CNH), the reserves of which are kept in Hong Kong.

fear and uncertainty

The news of the arrest is in the middle of unconfirmed rumors that Chinese authorities allegedly arrested the MultiChain project team. MultiChain is a cross-chain router protocol in which the contract is set for a wealth of over $ 1 billion.

Last week, transactions were delayed in the protocol and got stuck with several offline cross-chain-bridge paths, including polygon ZXEVM, KAVA and ZKSync. The team initially stated that the problem was due to a backend upgrade that took longer than expected. However, the narrative was later changed so that problems could be attributed to uncontrollable events.

The multiChain team was neither able to confirm nor refute the continued rumors and is silent on the social media platforms, including the Telegram group and the Discord server.

On May 25th, MultiChain co-founder DJ Qian, who no longer works with the project, disclosed on Twitter that the current CEO, Zhaojun, was unavailable when he was asked to provide technical help for the ongoing problem.

The sudden disappearance of the teams MultiChain and Trust Reserve could trigger fear and uncertainty with their users and lead to panic sales of their products.

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