Tether-Backed Orionx Shuts Down Over $7 Million Custody Gap

Chile-based cryptocurrency exchange Orionx attracted industry attention after stablecoin issuer Tether led its Series A funding round, positioning the platform as part of a broader push into Latin America. Its collapse just 15 months after that investment raises fresh questions about custody controls, corporate governance and the oversight exercised by strategic backers in the region’s digital-asset market.

Orionx said it will shut down permanently after an audit found that more than $7 million in customer assets had been transferred to external wallets. Reports said the exchange accused two co-founders of misappropriating the funds. Customer withdrawals have been suspended while Orionx focuses on recovering and returning assets, though the company has not provided a repayment timetable or said how much remains recoverable.