Tether-Backed Orionx Exchange Ceases Operations Amid $7 Million Asset Discrepancy
Vexoda Newsroom
Chilean crypto exchange Orionx is permanently shutting down following a forensic audit that revealed over $7 million in customer assets were moved from its custody. Withdrawals are currently suspended
Orionx, a cryptocurrency exchange based in Chile and notably backed by the stablecoin issuer Tether, has announced its permanent closure. This drastic decision follows the discovery of a significant financial shortfall, where an internal audit revealed that customer assets exceeding $7 million had been transferred to wallets not managed by the exchange. The company stated that its primary objective now is to facilitate the return of as much client capital as possible, though all customer withdrawals have been temporarily halted during this process.
The discrepancy was initially detected by Orionx's Chief Operating Officer, Thomas Mac Millan, on August 27th, who identified a "significant mismatch" between the digital asset balances recorded in the company's internal systems and the actual amount held in its custody wallets. This led to an internal review and subsequently an external forensic audit. The audit confirmed that balances for major cryptocurrencies like Bitcoin (BTC), Ether (ETH), XRP, and Polygon (POL) recorded on Orionx's books were higher than the corresponding assets confirmed on-chain within the exchange's designated custody addresses.
The origin of this substantial asset shortfall is currently under investigation, with Orionx filing a criminal complaint against two of its co-founders, Roberto Zibert and Joaquín Díaz, who allegedly had access to the exchange's custody systems. The complaint suggests that assets may have been transferred out of Orionx's control between 2018 and 2021, potentially to accounts on other trading platforms. While the complaint details specific alleged transfers to accounts associated with these former executives, both Zibert and Díaz have denied any wrongdoing, stating that the true cause of the asset deficit remains unclear.
This situation arises just over a year after Tether led Orionx's Series A funding round in June 2025, a move intended to bolster Tether's expansion strategy for digital asset adoption within the Latin American market. Orionx, founded in 2017, had evolved from a simple retail trading platform to offering a broader suite of crypto payment and financial services across Chile, Peru, Colombia, and Mexico. The abrupt closure raises questions about the due diligence conducted during Tether's investment and the overall health of regional crypto infrastructure.
The market reaction, while not directly impacting major cryptocurrencies significantly due to Orionx's regional focus, serves as a stark reminder of the inherent risks in cryptocurrency trading and custody. Events like these underscore the critical importance of robust security measures, transparent auditing, and regulatory compliance within the digital asset space. For traders, it highlights the need for careful consideration of exchange security, operational stability, and the potential for unforeseen operational or fraudulent issues to impact asset availability.
Moving forward, traders and observers will be closely watching the progress of Orionx's asset recovery efforts and the outcome of the criminal proceedings against its former co-founders. The transparency and effectiveness of the company's closure process will be crucial in determining the extent to which client funds can be repatriated. Furthermore, this incident may prompt increased scrutiny of other exchanges operating in emerging markets, potentially leading to stricter regulatory oversight and enhanced due diligence requirements for both investors and established industry players.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.