Tether-backed Orionx freezes withdrawals after $7M moved

Orionx froze customer withdrawals after a forensic audit found more than $7 million had been transferred to wallets outside the exchange’s control. The company began a permanent closure and suspended withdrawals while it determines how much can be recovered. Orionx notified prosecutors and filed a criminal complaint dated Sept. 2, 2026, against former executives.

The exchange said it suspended withdrawals to prevent customers who move first from recovering assets at the expense of others. Orionx described its priority as returning as much customer property as possible ‘as quickly and fairly’ as circumstances allow.

Chile’s Comisión para el Mercado Financiero (CMF) rejected Orionx’s application for registration and authorization under the Fintech Act on June 19, 2026, ending a transitional arrangement that had allowed the exchange to operate while under review. Because Orionx is not registered or authorized, the regulator cannot oversee the wind-down or compel repayment of customer assets.

The CMF can provide guidance and direct affected users to legal options, but it lacks the authority to manage the exchange’s closure or enforce restitution. Customers must rely on Orionx’s internal restitution process or seek remedies through the courts.

Orionx’s closure tracker shows the process is at the first of five stages. Before any funds can be returned the exchange must reconcile individual account balances, determine the size of the recoverable asset pool and have a restitution plan approved. The company has not published a timeline for when repayments might begin or how large the recoverable pool will be.

Investors in Orionx include Bitfinex, which invested in 2023, and Tether, which made an investment in June 2025 to support regional expansion. The forensic audit finding that more than $7 million left Orionx’s custody raises questions about whether those transfers can be traced or recovered from the external wallets.

With withdrawals suspended, account holders cannot access funds while the exchange reconciles records. Until Orionx completes account reconciliation and secures approval for a restitution plan, affected users will remain unable to withdraw assets from the platform.