Tether-Backed Orionx Freezes Withdrawals Amid $7 Million Custody Loss

Tether-backed crypto exchange Orionx has frozen customer withdrawals after more than $7 million was transferred out of its custody. The exchange, which had been supported by Tether's investment, is now in the process of shutting down.

A forensic audit found that customer assets had been moved to wallets outside of Orionx's control, prompting the exchange to begin a permanent closure and suspend withdrawals while it determines how much can be returned.

The Chilean Comisión para el Mercado Financiero (CMF) said it cannot oversee Orionx's wind-down or order the exchange to return customer assets, leaving users dependent on the company's restitution process or potential court action.