Tether-backed Orionx is shutting down with customer withdrawals frozen after more than $7 million left its custody.

The Chilean crypto exchange said a forensic audit found that customer assets had been transferred to wallets outside its control, prompting it to begin a permanent closure and suspend withdrawals while it determines how much it can return.

The failure comes less than a year after Tether invested in Orionx in June 2025, following an earlier investment by affiliated exchange Bitfinex in 2023. Tether’s backing had been intended to support Orionx’s expansion across Latin America.

Customers now face a less certain outcome. Chile’s Comisión para el Mercado Financiero said it cannot oversee Orionx’s wind-down or order the…