Orionx, a Chile-based cryptocurrency exchange backed by Tether, said it will permanently shut down after an audit found that more than $7 million in customer assets had been moved to wallets outside the platform’s custody.
Audit Findings
The audit identified a custody gap exceeding $7 million, concluding that client funds had been transferred to wallets not controlled by Orionx. The company said it will cease operations following the audit’s findings.
Background on Orionx and Tether
Orionx operated as a digital asset trading platform serving users in Chile and the broader Latin American market. In 2023, Tether, the issuer of the USDT stablecoin, announced a strategic investment in Orionx as part of its efforts to expand stablecoin adoption in the region.
Why Custody Controls Matter
Centralized crypto platforms that hold customer assets are expected to maintain verifiable control of wallets and segregate client funds from company balances. Movements of client assets to wallets outside a platform’s custody can signal serious operational failures and typically prompt audits, heightened scrutiny, and, in severe cases, shutdowns to protect users.