Orionx Exchange to Close After $7 Million Custody Discrepancy
- Orionx, a Chilean crypto exchange backed by Tether, is shutting down after a forensic audit revealed over $7 million in custodial assets were transferred to unmanaged wallets.
- Withdrawals are currently suspended as the exchange prioritizes returning client assets.
- The audit uncovered discrepancies between recorded balances and actual custody holdings for Bitcoin (BTC), Ether (ETH), XRP, and Polygon (POL).
- Orionx has filed a criminal complaint against co-founders Roberto Zibert and Joaquín Díaz, accusing them of unauthorized asset transfers totaling over $1.5 million.
- The exchange was founded in Chile in 2017 and received significant investment from Tether in June of last year.
The closure follows a review initiated to comply with Chile’s Fintech Law, which led to the discovery of significant asset management issues within Orionx’s operations.
As Orionx shuts down due to these findings, it highlights critical concerns regarding asset custody practices within cryptocurrency exchanges, particularly with the reported $7 million discrepancy.(Source)
