Orionx Shuts Down Amid $7M Custody Discrepancy Scandal

Orionx, a Chilean cryptocurrency exchange backed by Tether, has shut down permanently after a forensic audit discovered that over $7 million in custodial assets had been moved to wallets outside its control.

The audit compared the exchange's internal records against blockchain data and found discrepancies in funds managed for Bitcoin, Ethereum, XRP, and Polygon. The company's chief operating officer, Thomas Mac Millan, flagged the issue in late August, prompting an internal review that ultimately led to the closure.

Orionx has temporarily suspended withdrawals, citing a need to treat all users equally while it works to return as much of their assets as possible. However, the company stopped short of promising full repayment, leaving customers uncertain about their future.

The exchange's former co-founders, Roberto Zibert and Joaquín Díaz, were recently accused in a criminal complaint of diverting customer funds over several years. They categorically denied the allegations, stating that they had never acted against clients' interests and expected an independent investigation to clear them.

Chile's Financial Market Commission had previously rejected Orionx's registration application in June, meaning the exchange operated without regulatory oversight until its shutdown.