Tether-Backed Orionx Exchange Shuts Down Amid Customer Asset Loss

Tether's backing of Orionx, a Chilean crypto exchange, has come under scrutiny after it was announced that the platform would be shutting down due to over $7 million in customer assets being transferred out of its control.

The exchange froze withdrawals to prevent customers from recovering their funds at the expense of others who may not have moved quickly enough.

A forensic audit led to the decision to begin a permanent closure and suspend withdrawals, with Orionx stating that it will determine how much of the customer assets can be returned.

The Comisión para el Mercado Financiero in Chile said they cannot oversee the wind-down or order the exchange to return customer assets, leaving users dependent on the company's restitution process or potential court action.