Trust Reserve, the company responsible for issuing two stablecoins, had its team arrested by Chinese police on May 29, as reported by PANews.
On that day, the team stopped communicating, and their family members were informed. When the news agency visited the project’s office in Shanghai, they discovered a notice indicating “judicial seizure.” The reasons for the arrest of Trust Reserve’s team by the police remain unclear.
Trust Reserve created stablecoins backed by the Chinese yuan (CNY) and Hong Kong dollar (HKD).
During a funding round known as Series A+, Trust Reserve, the stablecoin issuer, secured $10 million in investment. KuCoin Ventures led the funding round, with participation from Circle and IDG Capital. At the time, the company stated that it had approximately 60 employees and intended to expand its workforce further.
There are rumors circulating that the Multichain core team might have been arrested in China. As a result, the protocol has been experiencing partial downtime, and there has been no communication or updates from the core team based in China for more than a week.
While the exact cause for the arrest of Trust Reserve’s team remains uncertain, it is possible that authorities are cracking down on digital payment systems that do not utilize the central bank’s digital currency, known as the RMB.
Also Read This Related: Stably Introduces Stably USD: A New Stablecoin for Smooth Bitcoin Trading on the Blockchain
China has implemented strict regulations against cryptocurrency trading and mining while simultaneously promoting the use of its central bank digital currency (CBDC), known as the e-CNY. The e-CNY is now accessible in 25 cities and boasts 260 million wallets. Additionally, China aims to decrease its reliance on the US dollar and intends to replace it with the CBDC for cross-border transactions.
Important: This article is intended solely for informational purposes. It should not be considered or relied upon as legal, tax, investment, financial, or any other form of advice.
Join Cryptos Headlines Community: https://linktr.ee/cryptosheadlines.com