Tether-Backed Orionx Collapses Amid $7 Million Custody Shortfall
Chilean cryptocurrency exchange Orionx has suspended all customer withdrawals and permanently closed its operations after discovering a $7 million custody shortfall. The company, which received backing from stablecoin giant Tether just 15 months ago, announced the shutdown on September 3.
An external investigation uncovered that client assets recorded in its systems had been transferred to wallets outside the company's control. The forensic audit found that balances for Bitcoin, Ethereum, XRP, and Polygon tokens appeared as available in Orionx's internal records but could not be fully verified at addresses controlled by the company.
Orionx co-founders Joaquín Díaz and Roberto Zibert were accused of unfair administration after an internal review identified a 'significant mismatch' between balances recorded in the company's systems and actual cryptocurrency held in custody wallets. The founders denied any wrongdoing, stating that they never acted against customer interests.
The Chilean Financial Market Commission revealed on September 4 that it had rejected Orionx's registration and authorization application on June 19, months before the forensic audit exposed the asset shortfall. Orionx operated under a transitional arrangement until its license was denied.