Orionx, a Chilean Tether-backed crypto exchange, has frozen withdrawals and begun a permanent shutdown after a forensic audit found more than $7 million of customer assets moved to external wallets not under Orionx’s control.

Recovery efforts remain uncertain, with the company’s internal tracker showing the first of five restitution stages yet to be completed, including account reconciliation and approval of a restitution plan.

Orionx has filed a criminal complaint dated early September against former executives over transfers tied to missing assets, though no one has been deemed responsible yet.

The audit suggests that two founding partners and other former employees were aware of and involved in transactions contributing to the asset-liability gap.

Investigations point to transfers between 2018 and 2021 from exchange wallets to accounts linked to the company’s email on other platforms, allegedly used for market operations.

Customers’ primary concern is asset recovery, with ongoing updates as the restitution process unfolds and a Closure and Asset Restitution Plan submitted to authorities prioritizing recovery of as many assets as possible in the first phase.

Tether invested in Orionx in June 2025 to support expansion into Latin America, a context for regulatory and investor interest, though the investment does not guarantee asset recovery.

Regulators previously rejected Orionx’s registration, ending its transition period and leaving the firm to wind down rather than pursue regulated activity.

The issue came to light after an August audit trigger when a notable mismatch between balances and custody assets prompted an internal review and external audit.

Chile’s CMF notes Orionx is not registered or authorized under the fintech law, meaning regulators cannot oversee its wind-down or compel restitution, leaving customers reliant on Orionx’s process or potential court action.

Orionx, established in 2017 and serving over 100,000 users, faces what regulators describe as possibly Chile’s largest crypto crisis as efforts continue to restore user confidence and determine liability.

Withdrawals are suspended during the closure to ensure orderly asset restitution and equal treatment of customers.