Orionx freezes withdrawals after 7 million dollars leaves custody

Tether-backed Orionx has frozen customer withdrawals following the transfer of over 7 million dollars in assets to external wallets. A forensic audit revealed these unauthorized transfers, leading to the exchange's decision to permanently close and suspend withdrawals while assessing the return of customer funds. This situation arises less than a year after Tether's investment in Orionx in June 2025, aimed at supporting its expansion in Latin America. Chile's Comisión para el Mercado Financiero stated it cannot oversee the wind-down process or mandate the return of customer assets, leaving users reliant on Orionx's restitution efforts or potential legal action. Orionx has frozen withdrawals to ensure equitable treatment among customers. The closure process is currently at the initial stage, requiring account reconciliation and a restitution plan approval before any funds can be returned, with no repayment date provided. The CMF's limited authority is due to Orionx's regulatory status, as its application for registration was rejected on June 19, restricting it to winding down operations. Orionx has indicated its priority is to return customer property as quickly and fairly as possible and has filed a criminal complaint against former executives regarding the missing assets. The exchange still needs to reconcile balances and determine available assets before restitution can commence.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.