The team behind CNHC, a stablecoin pegged to the value of the offshore yuan, and HKDC, one tied to the Hong Kong dollar, has been detained by Shanghai police, PANews reported on Wednesday.
The Trust Reserve team was taken on May 29, the Chinese-language news outlet reported. PANews also said it found a judicial seizure notice with the same date on the door of the company's office.
Earlier this year KuCoin closed a $10 million funding round into CNHC. The offshore yuan is known by its abbreviation, CNH.
CoinDesk has reached out to the CNHC team and Shanghai and Hong Kong police for a comment.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.