Orionx freezes withdrawals after $7 million leaves custody
Exchange freezes withdrawals after $7 million missing
Orionx, a crypto exchange backed by the stablecoin Tether, has stopped all customer withdrawals. A forensic audit showed that more than $7 million in user assets was transferred to wallets that the exchange does not control.
The exchange says the freeze is meant to stop a “first‑come, first‑served” rush that could leave later customers with less or no funds.
Key points
- Withdrawals are frozen while Orionx reconciles balances.
- More than $7 million was moved to external wallets, according to the audit.
- Chile’s financial regulator (CMF) cannot force Orionx to repay customers.
- Orionx’s closure process is at the first of five stages; no repayment date has been set.
- The exchange filed a criminal complaint on Sept 2 against former executives for the transfers.
Regulatory context
The Chilean Comisión para el Mercado Financiero (CMF) rejected Orionx’s registration and authorization application on June 19, 2026. Because the exchange is not registered under Chile’s Fintech Act, the CMF can only point users to Orionx or the courts and cannot order a repayment.
Recovery process
Orionx must first verify each customer’s balance, then determine how much of the missing assets can be recovered. After that, a restitution plan must be approved before any funds are returned. The exchange’s public tracker shows these steps are still pending.
Background
Tether invested in Orionx in June 2025 to help the exchange expand across Latin America. An earlier investment was made by Bitfinex, an exchange affiliated with Tether, in 2023.
