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Tether-backed Orionx freezes withdrawals after $7 million leaves custody

A Chilean regulator says it cannot compel Orionx to return customer assets, and the exchange has not disclosed a repayment date.

Reported · Written up by our desk · Market Structure

A Tether-backed Chilean crypto exchange, Orionx, is shutting down and has frozen customer withdrawals after more than $7 million left its custody, the exchange said following a forensic audit.

Orionx said customer assets were transferred to wallets outside its control, triggering a permanent closure and a suspension of withdrawals while it evaluates how much it can return. The exchange also said the freeze is intended to prevent customers who move first from recovering at the expense of those who remain.

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

Orionx’s closure tracker remains in the first stage out of five, with account reconciliation and approval of a restitution plan required before funds are returned, and no repayment date has been disclosed. The CMF had rejected Orionx’s registration and authorization application on June 19, after which Orionx was limited to winding down existing business rather than taking on new regulated activity.

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