Tether-Backed Exchange Orionx Shuts Down Amid $7M Custody Discrepancy
Orionx, a Chile-based cryptocurrency exchange backed by Tether, has announced it will shut down after a forensic review revealed a significant custody discrepancy. The issue involves more than $7 million in assets recorded in its custodial records that were transferred to wallets the exchange does not manage.
The exchange temporarily suspended withdrawals as it prioritizes returning client funds. Orionx's shutdown comes amid increased scrutiny of custody controls and regulatory compliance for crypto firms operating in Latin America.
According to a complaint, the transfers took place between 2018 and 2021, although the exact timing is unclear. Former co-founders Roberto Zibert and Joaquín Díaz have denied allegations tied to unauthorized access to custody systems.