Tether-Backed Orionx Shuts Down Amid $7M Custody Shortfall

Orionx, a Chilean cryptocurrency exchange backed by Tether, has announced it will shut down after discovering a $7 million custodial shortfall. The company claims that assets left wallets not managed by Orionx, leading to the discrepancy.

The exchange said it initiated a permanent closure process following forensic findings that compared internal records with on-chain data linked to its custody addresses. These funds had been moved to wallets it did not manage.

Orionx has temporarily suspended withdrawals while it works to return client assets. The company's sole priority is now to return as much of its clients' assets as possible, according to a statement posted on X.

Former co-founders Roberto Zibert and Joaquín Díaz are accused by Orionx of having access to custody systems and allegedly transferring funds out of the exchange. The two have denied these accusations.