The CNHC Stablecoin Team Disappeared Or Arrested After $10M Funding: Report

Key Points:

• According to PANews, the CNHC stablecoin issuer team went abroad and lost contact or was arrested by the judicial authorities.
• CNHC Group (now renamed Trust Reserve) is an issuer of the CNHC stablecoin pegged 1:1 to the Chinese yuan overseas.
• Previously, the project raised $10 million from Kucoin Ventures.

On May 31, PANews learned exclusively that CNHC Group (now renamed Trust Reserve), the issuer of CNHC stablecoin is pegged 1:1 to the offshore Chinese yuan, has lost contact since the afternoon of the day May 29.

It was revealed that the group was taken away and detained by the police, and the family members of some of the staff members were notified.

PANews went to the company’s office in a building in Pudong, Shanghai, and found that the office was empty and that the door was stamped with a “Judicial seizure, strict non-destructive” seal, signed on the May 29th, 2023.

According to official information, Trust Reserve products include the CNHC offshore stablecoin and the HKDC stablecoin Hong Kong dollar.

People familiar with the matter told PANews that the company’s stable currency business has yet to really be promoted on a large scale. Still, the company also has a cross-border payments business, and transactions may be affected by the payment business.

Earlier, Joy Cham, co-founder of CNHC, told The Block this was a Series A+ funding round. CNHC began raising capital last March and ended in August, Cham said, adding that the company had previously raised “tens of millions of dollars over two years” without disclosing the amount.

It received a $10 million investment led by KuCoin Ventures. Other investors included Circle Ventures and IDG Capital.

CNHC stablecoin was launched in 2021 for use cases, including remittances and cross-border commercial payments. According to Cham, it is currently issued on the Ethereum and Conflux blockchains, and its total supply is around 15 million tokens (worth about $2 million). The current total supply of Tether’s CNHT is about 20 million tokens.

The project also previously revealed plans to increase its team of around 60 people by hiring various departments, including operations, compliance, and business development.

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