Orionx shuts down after $7M crypto custody shortfall

Orionx, a Chilean cryptocurrency exchange backed by Tether, has announced a permanent shutdown and suspended all customer withdrawals following a forensic audit that revealed a $7 million shortfall in custodial assets.

The audit, which compared internal records against on-chain data, found that assets including Bitcoin, Ether, XRP, and Polygon had been moved to external wallets outside the company’s control. Orionx alleges these unauthorized transfers occurred between 2018 and 2021. Consequently, the exchange has filed criminal complaints against former co-founders Joaquín Díaz and Roberto Zibert, accusing them of disloyal administration. Both former executives have denied any wrongdoing.

More than 100,000 registered users face uncertain recovery prospects. Orionx stated it is working on a restitution plan but cannot guarantee full repayment of funds. Chile’s Financial Market Commission (CMF) noted that it does not supervise Orionx’s wind-down and cannot compel the exchange to return assets, as the firm’s registration application had been rejected earlier this year and it was not operating under the country’s Fintech Act.