Orionx freezes withdrawals after over $7 million leaves custody

Chile‑based exchange Orionx, backed by Tether, has halted all customer withdrawals after a forensic audit revealed that assets worth more than $7 million were transferred to wallets outside the platform’s control. The company announced a permanent wind‑down and is working to determine how much can be returned to users.

Background and Tether involvement

Orionx received an investment from Tether in June 2025, following an earlier stake by Bitfinex in 2023. The backing was meant to support the exchange’s expansion across Latin America.

Regulatory context

Chile’s financial regulator, the Comisión para el Mercado Financiero (CMF), had rejected Orionx’s application for registration and authorization on 19 June, limiting the firm to winding down existing operations. Because Orionx was not registered under Chile’s Fintech Act, the CMF cannot compel repayment of customer assets, leaving users to rely on the exchange’s restitution process or legal action.

Withdrawal freeze and restitution plan

Orionx froze withdrawals to prevent a “first‑come, first‑served” scenario that could disadvantage later‑filing customers. The company’s closure tracker outlines five stages; it is currently at the first stage, which involves reconciling individual balances and approving a restitution plan. No timeline for repayments has been provided.

Legal actions

The exchange has reported the transfers to prosecutors and filed a criminal complaint on 2 September against former executives. The complaint has not yet established responsibility for the missing assets.

What customers can expect

• Recovery depends on the outcome of balance reconciliation and the approval of a distribution plan.
• The CMF cannot enforce asset return; users may need to pursue court action.
• Orionx has stated its priority is to return as much customer property as possible, “as quickly and fairly as circumstances allow.”