Orionx Shuts Down Amid $7M Custody Shortfall, Users Left in Limbo

Orionx, a Chile-based cryptocurrency exchange backed by Tether, has halted withdrawals ahead of its permanent shutdown. The decision comes after a forensic audit revealed a $7 million custody shortfall in customer assets.

The audit compared Orionx's internal transaction records against on-chain data and found a discrepancy between what users' accounts said they held and what the exchange's wallets actually contained.

Orionx has announced a phased restitution plan to try making users whole, but acknowledged it cannot guarantee full recovery. The restitution process remains in its earliest stages, with no independent verification confirming whether the transferred assets can be recovered.