The skyline of China’s booming digital economy is currently shrouded in uncertainty as reports have emerged about the sudden disappearance of the Trust Reserve’s core team, formerly the CNHC Group. A prominent name in the blockchain realm, Trust Reserve is best known for issuing two major stablecoins, one backed by the Chinese Yuan (CNY) and the other backed by the Hong Kong Dollar (HKD).
On May 29, the team vanished abruptly from the radar, sparking concern and raising eyebrows across the crypto community. According to a recent article by PANews, a few relatives of the missing team members have been informed about this unexpected development.
When PANews reporters took the initiative to visit Trust Reserve’s headquarters in Shanghai, they were greeted by a stark notice declaring a “judicial seizure.” The implications of this finding have sent ripples through the digital currency industry.
Trust Reserve had attracted investment interest from some heavyweight entities in a backdrop of explosive growth. Earlier this year, they had successfully secured $10 million in a Series A+ funding round in March. This endeavor was spearheaded by KuCoin Ventures, with notable backing from Circle and IDG Capital. Trust Reserve’s workforce, already around 60 strong at the time of funding, had plans for further expansion.
However, this is not the only disturbing news from China’s blockchain sector. Whispers have been circulating that the core team of Multichain, another prominent protocol, might also have been detained. Despite the protocol experiencing partial downtime, there have been no updates from Multichain’s Chinese team for over a week.
As the saga unfolds, the global crypto verse is keenly watching, anxious to learn what the future holds for these major blockchain entities and the digital currency landscape in China.
