Close Menu
Crypto Breaking News
    Crypto Breaking News
    • News
      • Press Release
      • Featured
      • Events
      • Exchanges
      • Bitcoin
      • Ethereum
      • Solana
      • Ripple
      • Artificial Intelligence (AI)
      • Real World Assets (RWA)
      • Markets & Finance
      • Regulation & Policy
      • Press Releases by PR Newswire
      • News by CoinPedia
      • News by Coincu
      • News by Blockchain Wire
    • Crypto
      • Companies
      • Events
      • Partners
      • Buy Crypto
      • Timers
    • Advertise
      • Submit a Press Release
      • Logos
      • About
      • Services
    • Offers
      • Marketing Services
      • Wallets & Tools
    • Account
    • Video
    • Contact
    Submit PR
    Crypto Breaking News
    Bitcoin Crypto News Ethereum Exchanges Ripple Tether

    Tether-Backed Orionx to Shut Down After $7M Custody Gap Found

    6 September 2026
    FacebookTwitterLinkedInCopy Link
    News Feed
    Google NewsRSS
    Tether-Backed Orionx To Shut Down After $7m Custody Gap Found
    Tether-Backed Orionx To Shut Down After $7m Custody Gap Found

    Orionx, a Chile-based cryptocurrency exchange backed by Tether, is shutting down after a forensic review flagged a multimillion-dollar custody discrepancy, according to statements shared by the company on X. The exchange said it is moving into a permanent closure process and has temporarily suspended withdrawals as it works to return client funds.

    Orionx said the audit identified more than $7 million in assets recorded in its custodial records that had been transferred to wallets it does not manage. The announcement arrives against a broader backdrop of increased scrutiny around custody controls and regulatory compliance for crypto firms operating in Latin America.

    Key takeaways

    • Orionx is initiating a permanent shutdown after a forensic audit found a custody mismatch involving more than $7 million.
    • The exchange says withdrawals are temporarily suspended while it prioritizes returning client assets.
    • Orionx has not disclosed when the transfers occurred, but a criminal complaint alleges outflows from custody between 2018 and 2021.
    • Former co-founders Roberto Zibert and Joaquรญn Dรญaz deny allegations tied to unauthorized access to custody systems.
    • Tether led Orionxโ€™s Series A in 2025 as part of an expansion push, with the funding announcement later removed from Tetherโ€™s website.

    A forensic finding triggers a withdrawal pause

    Orionx announced that it began the process of permanently closing the platform after uncovering what it described as evidence of a custody-related issue. In its X post, the exchange said withdrawals have been paused in the interim while it attempts to return as much as possible to clients.

    At the center of Orionxโ€™s case is the discrepancy identified between the balances shown in its systems and the assets it holds at its custody addresses. Orionx attributed the issue to more than $7 million in custodial assets having moved to wallets the exchange does not manage, according to the company announcement.

    While Orionx said it commissioned a forensic audit that compared internal records with verifiable on-chain data, the exchange did not specify in its post when the transfers took place or how the mismatch was first detected. That timing detail is important for investors and users trying to understand exposure windows, but the available reporting points to a longer period of alleged activity.

    Timeline and alleged custody gaps cited in a Chilean complaint

    According to reporting by Chilean newspaper La Tercera, Orionx undertook internal efforts to comply with Chileโ€™s Fintech Law, conducting a review of its operations in 2025 and bringing in financial professionals. The publication tied Orionxโ€™s actions to a criminal complaint involving former executives.

    Reportedly, on Aug. 27, Orionxโ€™s chief operating officer Thomas Mac Millan noticed a โ€œsignificant mismatchโ€ between the balances recorded in Orionxโ€™s systems and what was actually held in custody, as described in the complaint. Orionx then ran an internal review and later commissioned an external forensic audit that matched its records with data that can be checked on-chain.

    The forensic audit findings, as described through the complaint and reported by La Tercera, indicate that balances tracked within Orionxโ€™s systems were higher than the assets held at its custody addresses for Bitcoin (BTC), Ether (ETH), XRP, and Polygon (POL). That kind of gap can be especially consequential for users because it suggests the platformโ€™s accounting and custody reality did not align across multiple major assets.

    La Tercera further reports that the complaint alleges assets were transferred out of Orionxโ€™s custody between 2018 and 2021, including to accounts hosted on other crypto platforms. Although the exchangeโ€™s public announcement did not spell out the period, the complaint points to a multi-year span, which could influence how authorities and affected customers evaluate responsibility and timing.

    Criminal complaint targets former co-founders; denials follow

    Orionx said it filed a criminal complaint on Wednesday against former executives Roberto Zibert and Joaquรญn Dรญazโ€”both co-foundersโ€”whom it alleges had access to the companyโ€™s crypto custody systems. In the complaint as reported by La Tercera, an account associated with Dรญaz allegedly received more than $1.5 million across 14 transfers. The report also cites allegations that another wallet received 187 Ether, more than 4.1 million USDt (USDT), and 200,000 USDC from Orionx.

    Zibert and Dรญaz denied wrongdoing, according to La Cuarta. They said they never acted against customersโ€™ interests and argued that the cause of Orionxโ€™s asset shortfall remains unclear.

    For Orionx customers, the competing narrativesโ€”Orionxโ€™s custody-mismatch claims versus the co-foundersโ€™ denialsโ€”are likely to shape what happens next. But the practical impact is immediate: Orionx is prioritizing asset recovery efforts while keeping withdrawals suspended, meaning users cannot rely on normal exchange liquidity during the shutdown process.

    Tetherโ€™s 2025 backing and the question of what changed

    Orionx was founded in Chile in 2017 and expanded from a retail crypto exchange into a broader platform that offered crypto payment and financial services across Chile, Peru, Colombia, and Mexico.

    In June 2025, Tether invested in Orionx, exclusively leading Orionxโ€™s Series A round, according to an archived version of Tetherโ€™s announcement. That announcement is no longer available on Tetherโ€™s website, but the archived copy attributes the investment to Tetherโ€™s stated aim of expanding digital-asset adoption across Latin America.

    Cointelegraph reported that it contacted Tether and Orionx for comment but had not received a response by publication. The episode raises an investor question that often comes up in crypto custody failures: even when an exchange secures prominent strategic backing, custody controls and operational integrity still require continuous verification, particularly as regulatory expectations rise.

    What remains uncertain is how the alleged custody shortfall ties to Orionxโ€™s later operations and compliance efforts. The complaint reporting points to transfers between 2018 and 2021, while Orionxโ€™s public review and forensic steps occurred later. Until more details emerge from the criminal process and the ongoing closure and restitution efforts, the exact mechanics of the gapโ€”along with the responsibility chainโ€”may remain disputed.

    Over the coming weeks, clients and observers will likely watch for updates on whether Orionx can identify and recover missing assets from the wallets it says it does not control, as well as what authorities uncover regarding access, internal controls, and the alleged timeline of transfers.

    Risk & affiliate notice: Crypto assets are volatile and capital is at risk. This article may contain affiliate links. Read full disclosure

    Crypto Breaking News
    • Website
    • Facebook
    • X (Twitter)
    • Pinterest
    • Instagram
    • Tumblr
    • LinkedIn

    The Crypto Breaking News editorial team curates the latest news, updates, and insights from the global cryptocurrency and blockchain industry.

    Related Posts

    Occ Finalizes Genius Act Rules For Stablecoin Issuers And Custody

    OCC Finalizes GENIUS Act Rules for Stablecoin Issuers and Custody

    9 minutes ago
    France Proposes Liability Rules For Crypto Exchanges Enabling Defi

    France Proposes Liability Rules for Crypto Exchanges Enabling DeFi

    1 hour ago
    Pancakeswap Tvl Surpasses $380m Ahead Of Fee Overhaul Vote

    PancakeSwap TVL Surpasses $380M Ahead of Fee Overhaul Vote

    2 hours ago
    Zcash Jumps 12% After Nu7 Upgrade Activation Height Finalized

    Zcash Jumps 12% After NU7 Upgrade Activation Height Finalized

    3 hours ago
    2026 Crypto Shutdowns: 82 Projects Close As Funding And Security Fail

    2026 Crypto Shutdowns: 82 Projects Close as Funding and Security Fail

    4 hours ago
    Bitwise And Hyperliquid Push Sec Rule Changes For Token Trading, Airdrops

    Bitwise and Hyperliquid Push SEC Rule Changes for Token Trading, Airdrops

    5 hours ago

    Search Crypto News

    Featured Crypto News

    Tangem Wallet Discount: Save Up To 30% With Crypto And Seedless

    Tangem Wallet Discount: Save Up to 30% With CRYPTO and SEEDLESS

    10 October 2026

    Latest News

    • OCC Finalizes GENIUS Act Rules for Stablecoin Issuers and Custody
    • France Proposes Liability Rules for Crypto Exchanges Enabling DeFi
    • PancakeSwap TVL Surpasses $380M Ahead of Fee Overhaul Vote
    • Zcash Jumps 12% After NU7 Upgrade Activation Height Finalized
    • 2026 Crypto Shutdowns: 82 Projects Close as Funding and Security Fail
    • Bitwise and Hyperliquid Push SEC Rule Changes for Token Trading, Airdrops
    • Tech Firms Move to Block 8 eMudhra Certificates Over Phishing Risk
    • Tech Giants Move to Block 8 eMudhra Certificates Linked to Fake Sites
    • Utah AG Sues Kalshi to Recover Profits From Prediction Market
    • Qubic Reboots Blockchain After $1.4M Hack, Opens Recovery Claims

    Join 20,000+ Crypto Followers

    • Facebook2.4K
    • Twitter4.5K
    • Instagram7.2K
    • LinkedIn4.3K
    • Telegram55
    • Threads1000
    Ledger

    About Crypto Breaking News

    About Crypto Breaking News

    Crypto Breaking News is a fast-growing digital media platform focused on the latest developments in cryptocurrency, blockchain, and Web3 technologies. Our goal is to provide fast, reliable, and insightful content that helps our readers stay ahead in the ever-evolving digital asset space.

    Web3 Digital L.L.C-FZ
    License Number: 2527596
    ๐Ÿ“ž +971 50 449 2025
    โœ‰๏ธ info@cryptobreaking.com
    ๐Ÿ“Meydan Grandstand, 6th floor, Meydan Road, Nad Al Sheba, Dubai, United Arab Emirates

    FacebookX (Twitter)InstagramPinterestYouTubeTumblrBlueskyLinkedInRedditTikTokTelegramThreadsRSS

    Links

    • Crypto News
    • Submit a Press Release
    • Advertise
    • Contact Us
    • Privacy Policy
    • Disclaimer
    • Terms and Conditions
    • Stocks Breaking News

    advertising

    © 2026 CryptoBreaking.com | All rights reserved | Powered by Web3 Digital & Osom One

    Type above and press Enter to search. Press Esc to cancel.

    Change Location
    Find awesome listings near you!