Tether-backed crypto exchange freezes withdrawals after $7 million leaves custody

Tether-backed Orionx is shutting down with customer withdrawals frozen after more than $7 million left its custody.The Chilean crypto exchange said a forensic audit found that customer assets had been transferred to wallets outside its control, prompting it to begin a permanent closure and suspend withdrawals while it determines how much it can return.The failure comes less than a year after Tether invested in Orionx in June 2025, following an earlier investment by affiliated exchange Bitfinex in 2023. Tether’s backing had been intended to support Orionx’s expansion across Latin America.Customers now face a less certain outcome. Chile’s Comisión para el Mercado Financiero said it cannot oversee Orionx’s wind-down or order the exchange to return customer assets, leaving users dependent on the company’s restitution process or potential court action.Orionx said it froze withdrawals to prevent customers who move first from recovering assets at the expense of those who remain. Its closure tracker is still at the first of five stages, with account reconciliation and approval of a restitution plan required before funds are returned. No repayment date has been disclosed.Customers face reco...