Stablecoin issuer Trust Reserve's team detained by police in China: PANews

Quick Take

  • The Trust Reserve team has been detained in China, according to PANews.
  • The team raised $10 million in March.

The core team of Trust Reserve (formerly CNHC Group), which issues two stablecoins, was detained by police in China on May 29, according to PANews.

The team dropped out of contact that day and some family members were notified. The news agency visited the project's office in Shanghai and found a notice that said "judicial seizure."

Trust Reserve issued a CNY-backed stablecoin and an HKD-backed stablecoin.

In March, the stablecoin issuer raised $10 million in a Series A+ funding round led by KuCoin Ventures, with participation from Circle and IDG Capital. At the time, the company had around 60 employees with plans to hire more.

This comes alongside rumors that the Multichain core team may have been detained in China. The protocol still has partial downtime and there have been no updates from the core team in China for over a week.

Trust Reserve didn't immediately respond to The Block's request for comment. A KuCoin Ventures spokesperson said the firm is "closely monitoring the situation."

(Updates with comment from KuCoin Ventures)

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.