Orionx, a Chilean crypto exchange backed by Tether, is shutting down after a forensic audit found more than $7 million in client assets moved to wallets outside the company's control. The exchange has suspended withdrawals and filed a criminal complaint against its co-founders while it works to return client funds.
Orionx, a crypto trading exchange backed by stablecoin issuer Tether, announced on Sep. 3 that it is shutting down after an audit uncovered a gap of more than $7 million in client assets.
Audit finds funds moved outside company control
A forensic audit confirmed that a transfer of assets worth more than $7 million held in custody went to wallets not administered by the company. According to a local news report, the audit detected discrepancies in Bitcoin, Ethereum, XRP, and Polygon holdings, and Orionx said it is still analyzing whether gaps exist in other cryptocurrencies.
Orionx filed a complaint with the Public Prosecutor's Office for an investigation and filed a criminal lawsuit against co-founders Joaquín Díaz and Roberto Zibert.
Withdrawals halted as founders deny wrongdoing
The exchange said its sole priority is returning the largest possible amount of client assets in the fastest and fairest way possible, and that it has already reported a closure and restitution plan to the authorities, with the first phase under implementation. It has temporarily suspended withdrawals as part of the closing process, saying the move ensures no client gains an advantage by withdrawing before anyone else.
Díaz and Zibert denied the allegations and said they have been cooperating since the issue first came to light. According to TheStreet: "To date, there is no certainty or clarity regarding the company's accounting discrepancies," the founders said, adding that an independent investigation will establish what happened.
Source: TheStreet
Trading involves risk.
Risk Disclaimer
