Orionx, a Chilean cryptocurrency exchange backed by Tether, has frozen customer withdrawals and initiated permanent closure following a forensic audit that found more than $7 million in customer assets moved to wallets outside the exchange's control.
The exchange suspended withdrawals to prevent customers who withdraw first from recovering assets at the expense of those remaining. Orionx said it will attempt to return assets through a restitution process, though no repayment date has been disclosed.
Regulatory Limitations
Chile's Comisión para el Mercado Financiero (CMF) rejected Orionx's registration and authorization application on June 19, ending a transitional arrangement that had allowed operations during review. The regulator determined Orionx had not demonstrated it secured the collateral required of approved providers under Chile's Fintech Act.
With this rejection, the CMF said it cannot oversee the exchange's wind-down or order asset repayment, leaving customers dependent on Orionx's internal restitution process or court action.
Closure Timeline Uncertain
Orionx's closure tracker remains at the first of five stages. The exchange must still reconcile individual customer balances, determine available assets, and gain approval of a distribution plan before restitution can begin.
Orionx notified prosecutors about the asset transfers and filed a criminal complaint dated September 2 against former executives. Those allegations have not established responsibility for the missing funds.
Tether had invested in Orionx in June 2025 to support the exchange's expansion across Latin America, following an earlier investment by affiliated exchange Bitfinex in 2023.
