Tether-Backed Exchange Shuts Down After $7M Custody Mismatch Discovered

Orionx, a Chilean cryptocurrency exchange backed by Tether, has announced its permanent closure due to a significant custody mismatch. The company claims that over $7 million in custodial assets have been transferred out of its systems and into wallets not controlled by Orionx.

The issue was discovered during an internal operational review, which led to the commissioning of a forensic audit. According to the report, balances maintained in Orionx's systems exceeded the assets actually held at the custody addresses for several cryptocurrencies, including Bitcoin, Ether, XRP, and Polygon.

The exchange has temporarily suspended withdrawals while it works to return what it can to clients. However, the lack of disclosed timing in the company's public post leaves outside observers with an incomplete picture of when customers may have been most exposed to the custody gap.