Stablecoin Issuer Trust Reserve’s Team Arrested

The team behind Trust Reserve, 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.”

It is not clear on what charges the police arrested Trust’s team.

Trust Reserve issued CNY-backed and HKD-backed stablecoins

The stablecoin issuer had raised $10 million in a Series A+ funding round led by KuCoin Ventures, with participation from Circle and IDG Capital. The company had announced back then it 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.

Though the reason for the arrest of Trust Reserve’s team is unclear, authorities could be clamping down on digital payments not using its RMB central bank digital currency.

e-CNY has 260 million wallets and expanded to 25 cities

Currently, the e-CNY is available in 25 cities and has 260 million wallets. To promote the use of its CBDC, China has a strict ban on crypto trading and mining in force as well. The Asian country is also looking to reduce its dependency on US dollar and replace it with its CBDC for cross-border transactions.