$7 Million Missing: Tether-Backed Orionx Shuts Down Amid Withdrawal Freeze

Tether-backed crypto exchange Orionx is shutting down after a forensic audit revealed that more than $7 million in customer assets had been transferred to wallets outside its control.

The Chilean exchange froze withdrawals to prevent customers from being left out of the restitution process, citing concerns that those who moved first could recover their assets at the expense of others.

Orionx's closure tracker is still at the first of five stages, with account reconciliation and approval of a restitution plan required before funds are returned. However, Chile's Comisión para el Mercado Financiero (CMF) has said it cannot oversee the wind-down or compel Orionx to repay customer assets.

The CMF rejected Orionx's registration and authorization application in June, ending a transitional arrangement that had allowed the exchange to operate while its application was being reviewed. As a result, Orionx is restricted to winding down existing business rather than taking on new regulated activity.