Team Behind Offshore Yuan, Hong Kong Dollar Stablecoins Detained by Chinese Police: Report

Earlier this year KuCoin closed a $10 million funding round into CNHC.

AccessTimeIconMay 31, 2023 at 11:50 a.m. UTC

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.

China has banned crypto trading, mining and bank transactions and is in the process of developing its own central bank digital currency (CBDC). Hong Kong has been more open the industry and in February published proposed rules for crypto trading platforms.

CoinDesk has reached out to the CNHC team and Shanghai and Hong Kong police for a comment.

Edited by Sheldon Reback.


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Camomile Shumba

Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.