Decentral Block Post

The Chinese government continues to crack down on the cryptocurrency industry with a new investigation targeting a major Chinese yuan stablecoin issuer.

The team of Trust Reserve, the issuer of the Chinese yuan-pegged stablecoin CNHC, has been detained by the Chinese police, the local blockchain publication PANews reported on May 31.

According to the report, Trust Reserve employees have been out of reach since afternoon May 29 due to multiple arrests. Some employees’ family members have also been reportedly notified about the detentions.

PANews also learned that Trust Reserve’s office in Pudong, Shanghai was empty as of May 31. The door was sealed on May 29, with a notice saying “Judicial seizure, strictly no vandalism.”

Trust Reserve, formerly known as CNHC Group, is the issuer of the Chinese CNHC stablecoin as well as the Hong Kong dollar-pegged stable currency HKDC.

Bitcoin (BTC) tested $27,000 on May 31 as weakness prevailed into the monthly close.

Analyst: Bitcoin reaching “crucial area”

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it continued to lose momentum after local highs near $28,500.

As early-week excitement faded, traders and analysts warned that now was a make-or-break point for the short-term trend.

“Crucial area approaching here for Bitcoin and dipped into it,” Michaël van de Poppe, founder and CEO of trading firm Eight, summarized.

“If this zone sustains as support & Bitcoin will be able to reclaim $27,500, everything looks like we’ll continue the upwards trend. Drop beneath $26,600 and we’ll see new lows.”

Ben.eth, the pseudo-anonymous memecoin creator behind at least three controversial token launches in recent weeks could fall under the crosshair of United States regulators, crypto lawyers suggest.

A previously little-known personality in the crypto community, Ben.eth has seen his Twitter following blow up nearly five-fold in May. The influencer has launched at least three memecoins in recent weeks — Ben Coin (BEN), PSYOP, and LOYAL.

Pre-sales of these memecoins — which require Ether (ETH) to be sent directly to the creator himself — have allowed Ben.eth to gather thousands of ETH. Currently, his wallet holds 10,946 ETH, equivalent to $20.8 million.

While Ben.eth’s supporters have defended the legitimacy of the token sales, others warn that the influencer’s actions could face the wrath of regulators and disgruntled investors alike. 

Michael Kanovitz, a partner at Loevy & Loevy told Cointelegraph, the Psyop launch “is a classic example of the concerns the SEC has identified in actions like those against Kim Kardashian and Paul Pierce.”