$7M Custody Gap Forces Closure of Tether-Backed Chilean Exchange Orionx

Chilean crypto exchange Orionx is shutting down after discovering a $7 million custody gap, according to a company announcement on X. The exchange attributed the issue to more than $7 million in custodial assets moving to wallets it did not manage.

The forensic audit found that balances recorded in Orionx's systems exceeded the assets held at its custody addresses for Bitcoin (BTC), Ether (ETH), XRP, and Polygon (POL). Orionx said it began a permanent closure process after uncovering the issue during an internal review.

Orionx accused co-founders Roberto Zibert and Joaquín Díaz of allegedly transferring assets out of Orionx's custody between 2018 and 2021, including to accounts on other crypto platforms. The exchange filed a criminal complaint against Zibert and Díaz, who denied the allegations.

Orionx temporarily suspended withdrawals as part of its efforts to return clients' assets.