Tether-backed Orionx closes over $7m custody gap

Chilean crypto exchange Orionx began permanently closing its operations on Sept. 3 after a forensic audit identified a custody shortfall exceeding $7 million. Summary Orionx began permanently closing after an audit found over $7 million missing from custodial wallets. Customer withdrawals remain suspended while Orionx calculates balances and prepares its planned asset restitution process. Chile’s financial regulator rejected Orionx’s authorization application in June and never supervised the platform’s activities. Orionx filed a criminal complaint against two cofounders who have categorically denied the company’s allegations. Tether led Orionx’s Series A financing in June 2025, fifteen months before the closure announcement. The company suspended customer withdrawals and said it could not guarantee that every client would recover 100% of their assets. The exchange said the audit found transactions that moved assets under its custody to wallets it did not control. Orionx has filed a criminal complaint with Chilean prosecutors and launched a restitution process intended to return as much as possible to customers. The allegations have not been proven in court. The two former executive...