Tether-Backed Crypto Exchange Orionx Shuts Down, Freezes Withdrawals After $7M Missing

Chilean crypto exchange Orionx is permanently shutting down and freezing customer withdrawals after a forensic audit revealed assets were transferred to wallets outside its control. More than $7M left the exchange's custody before the freeze was enacted. Chile’s regulator rejected the exchange's authorization application on June 19, stating Orionx failed to secure required collateral. The regulator confirmed it cannot force Orionx to repay customers, leaving users dependent on a restitution plan or court action. Orionx filed a criminal complaint against former executives on Sept. 2, though responsibility for the missing assets remains unestablished. The failure comes less than a year after Tether invested in the exchange in June 2025.