Moths to a flame! Offshore RMB issuer CNHC just promoted financing, rumors of Chinese government crackdown ensue

A stablecoin issuing company named Trust Reserve (CNHC Group) that issues digital Hong Kong dollars (HKDC) and offshore Chinese yuan (CNHC) recently announced a fundraising of $10 million led by KuCoin Ventures, with participation from Circle Ventures and IDG Capital. However, shortly after the media coverage of this news, reports emerged that the Shanghai office was vacated and sealed by judicial authorities.

Chinese Media: CNHC Arrested for Cross-Border Money Laundering Activities

Chinese media reported that the issuer's arrest is unrelated to cryptocurrency business but due to illegal activities in cross-border money flows.

深潮 TechFlow 独家获悉，据消息人士介绍，离岸人民币稳定币CNHC发行团队被上海宝山警方带走，但并非因为加密货币相关业务。

该团队长期从事资金跨境支付业务，将境外美元转移为离岸人民币再转换为在岸人民币，累计交易量达150亿美元。该事件恐因其服务客户资金来源出现司法问题。…

— TechFlow 深潮 (@TechFlowPost) May 31, 2023