Tether-backed Orionx to shut down after audit flags $7M custody gap
Orionx, a Chilean crypto exchange backed by Tether, is permanently closing after a forensic audit revealed a $7 million discrepancy in customer assets, which were found to have moved to external wallets. The exchange has suspended withdrawals and filed a criminal complain…
Intelligence analysis by Gemini 2.5 Flash
Orionx, a crypto exchange operating in Latin America, is shutting down following the discovery of a $7 million shortfall in customer funds, which an audit traced to wallets outside its control. The company, which received Series A funding from Tether in 2025, has accused its co-founders of wrongdoing, though they deny the allegations.
Imagine a bank where you keep your pocket money. Now imagine that bank suddenly says it's closing because a check-up showed $7 million of its customers' money went missing and ended up in other people's piggy banks, not the bank's own safe. That's kind of what happened with Orionx, a digital money exchange. They're trying to give back what they can, and they're even saying some of the people who started the bank might be responsible, though those people say they didn't do anything wrong.
Analysis
Orionx
Orionx, a Chilean cryptocurrency exchange established in 2017, has announced its permanent closure following the discovery of a significant $7 million custody gap. This shortfall was identified during a forensic audit, which revealed that customer assets had been transferred to wallets not managed by the exchange. The company initiated this review in 2025 as part of its efforts to comply with Chile's new Fintech Law, indicating a proactive, albeit ultimately revealing, step towards regulatory adherence.
The internal and external audits confirmed a "significant mismatch" between the balances recorded in Orionx's systems and the actual assets held in its custody addresses for various cryptocurrencies, including Bitcoin, Ether, XRP, and Polygon. This discrepancy, reportedly occurring between 2018 and 2021, points to a long-standing issue within the exchange's operational security and asset management protocols. The immediate consequence has been the suspension of withdrawals, with the company's stated priority now being the return of client assets.
Tether
The closure of Orionx carries particular weight due to its backing by Tether, the issuer of the USDt stablecoin. Tether exclusively led Orionx's Series A funding round in June 2025, as part of its strategic initiative to foster digital asset adoption across Latin America. This investment underscored Tether's commitment to expanding its influence in emerging crypto markets and supporting regional players.
The incident raises questions regarding the due diligence processes undertaken by major investors like Tether when backing crypto ventures. While Tether's announcement of the investment is no longer available on its website, the association highlights the reputational risks involved in such partnerships, especially when the backed entity faces severe financial irregularities and allegations of internal misconduct. The outcome for Tether's investment and its broader strategy in Latin America remains to be seen.
Roberto Zibert and Joaquín Díaz
At the heart of the custody crisis are allegations against Orionx's co-founders, Roberto Zibert and Joaquín Díaz. Orionx has filed a criminal complaint, accusing the former executives of having access to the company's crypto custody systems and being involved in the alleged transfers. Specifically, the complaint reportedly claims that an account linked to Díaz received over $1.5 million across 14 transfers, while another wallet allegedly received substantial amounts of Ether, USDt, and USDC from Orionx.
Both Zibert and Díaz have vehemently denied the allegations, asserting that they never acted against the interests of customers and that the true cause of the asset shortfall remains unclear. This stark disagreement sets the stage for a legal battle, with the criminal complaint aiming to uncover the full extent of the alleged misappropriation and hold responsible parties accountable. The resolution of these accusations will be crucial for understanding the precise mechanisms behind the $7 million custody gap and for any potential recovery efforts for affected clients.
Key points
- Tether-backed Orionx, a Chilean crypto exchange, is permanently shutting down.
- A forensic audit uncovered a $7 million custody gap, with customer assets moved to external wallets.
- Withdrawals are temporarily suspended as Orionx prioritizes returning client assets.
- Orionx has filed a criminal complaint against co-founders Roberto Zibert and Joaquín Díaz, who deny wrongdoing.
- The discrepancy was detected during a review initiated in 2025 to comply with Chile's Fintech Law.
The fact that an audit detected the discrepancy and led to a criminal complaint suggests a move towards accountability and transparency within the crypto space, potentially setting a precedent for stricter oversight. This could ultimately help mature the industry by exposing bad actors and reinforcing the importance of robust financial controls.
The shutdown of Orionx and the alleged misappropriation of $7 million in customer funds could severely damage trust in centralized crypto exchanges, particularly in Latin America. This incident might lead to increased regulatory pressure, potentially stifling innovation or making it harder for legitimate crypto businesses to operate in the region.
