Tether-backed Orionx to permanently close after audit reveals $7M custody shortfall
Chilean crypto exchange Orionx is shutting down after a forensic audit uncovered more than $7 million in customer assets moved to wallets outside its custody.
Why it matters
The shutdown highlights custody and regulatory compliance risks for crypto exchanges operating in Latin America. It also raises questions about due diligence standards for stablecoin issuers investing in regional platforms, given Tether's role as lead Series A investor.
Key facts
Orionx is a Chilean crypto exchange backed by Tether.
Reported by Cointelegraph
Orionx began permanently closing its operations and suspended customer withdrawals.
Reported by Cointelegraph
Orionx filed a criminal complaint against two cofounders who have denied wrongdoing.
Reported by Crypto.News
Tether led Orionx's Series A financing in June 2025.
Reported by Cointelegraph
Chile's financial regulator rejected Orionx's authorization application in June and never supervised the platform.
Reported by Crypto.News
Orionx warned it cannot guarantee every client will recover 100% of their assets.
Reported by Crypto.News
What happened
Orionx, a Chilean crypto exchange backed by Tether, is permanently closing after a forensic audit identified that more than $7 million in customer assets had been transferred to wallets the exchange did not control. The company announced the closure on its website and on X, stating that customer withdrawals are temporarily suspended and it cannot guarantee every client will recover 100% of their assets. Orionx has filed a criminal complaint against two cofounders, though the allegations have not been proven in court and both former executives named in the complaint have denied wrongdoing, according to Crypto.News. Cointelegraph reported that the company's chief operating officer, Thomas Mac Millan, detected a significant mismatch between recorded balances and actual custodial holdings on Aug. 27. The closure comes roughly 15 months after Tether led the exchange's Series A financing in June 2025. Crypto.News also noted that Chile's financial regulator rejected Orionx's authorization application in June and never supervised the platform's activities.
How the story developed
- Update
COO Thomas Mac Millan detected significant mismatch between balances and custody
The discrepancy between recorded system balances and actual custodial holdings was identified.
- Official statement
Orionx began permanently closing operations
The exchange suspended customer withdrawals and announced the closure process.
- First report
First report by Cointelegraph
Tether-backed Orionx to shut down after audit flags $7M custody gap
- Update
Tether led Orionx's Series A financing
Tether invested as part of its push to expand digital asset adoption in Latin America.
- Independent corroboration
Independently corroborated by Crypto.News
Tether-backed Orionx closes over $7m custody gap
- Update
Chile's financial regulator rejected Orionx's authorization application
The regulator never supervised the platform's activities.
- Official statement
Orionx filed criminal complaint against two cofounders
The two former executives named in the complaint have denied wrongdoing. The allegations have not been proven in court.
How coverage built up
Independent sources over time, counted the way the consensus panel counts them: a republication of a wire story does not move the line.
- 6 Sept 2026, 09:07 UTC: Cointelegraph — 1 independent source, 1 reports
- 6 Sept 2026, 11:10 UTC: Crypto.News — 2 independent sources, 2 reports
Affected entities
Also mentioned: USD Coin, United States
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| Cointelegraph Crypto media | Tether-backed Orionx to shut down after audit flags $7M custody gap | Original | |
| Crypto.News Crypto media | Tether-backed Orionx closes over $7m custody gap | Independent |
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