Crypto· Exchanges

Orionx Halts Withdrawals and Winds Down After Alleged $7M Asset Transfers

Chilean cryptocurrency exchange Orionx has halted customer withdrawals and begun winding down operations after discovering more than $7 million in custodied assets were transferred to wallets outside company control. A forensic audit identified significant discrepancies in Bitcoin, Ether, XRP, and Polygon holdings, leading the company to file a criminal complaint against two former executives. Chile's financial regulator indicated it lacks authority over the exchange and cannot mandate customer refunds, directing affected users to pursue claims through courts or directly with the company.

By AI NewsroomPublished about 17 hours agoUpdated about 17 hours ago3 views

Why It Matters

This incident underscores the regulatory gaps surrounding cryptocurrency exchanges in jurisdictions without comprehensive oversight frameworks. The case highlights risks for customers using platforms that operate without formal authorization from financial authorities, particularly regarding asset custody and the remedies available when losses occur.

Key Facts

Alleged asset transfer: Over $7 million transferred to wallets outside company control
Audit discrepancies: Approximately $6.98 million in accounting differences across Bitcoin, Ether, XRP, and Polygon
Time period: Questioned transactions occurred between 2018 and 2021
Accused former executives: Roberto Zibert (former general manager) and Joaquín Díaz (former technology manager)
Regulatory status: CMF rejected Orionx's registration application on June 19

Orionx, a Chilean cryptocurrency exchange, announced it is suspending all customer withdrawals and commencing a shutdown process following the discovery of unauthorized asset transfers. The company disclosed that a forensic audit uncovered approximately $6.98 million in discrepancies across multiple cryptocurrency holdings, with the largest gaps appearing in Bitcoin positions valued at roughly $3.93 million, followed by Ether holdings of $2.29 million.

In response to these findings, Orionx filed a complaint with Chilean authorities on September 2, naming two former company leaders. The complaint alleges that the executives engaged in disloyal administration practices, with specific allegations pointing to transfers involving a Celsius account and various external wallets that were not properly documented in internal records. The complaint references transfers moving 79 Bitcoin through undisclosed channels and transactions totaling more than $1.5 million to accounts associated with one of the accused individuals. The accused parties have publicly denied the allegations and stated they never acted against customer interests.

Chile's Commission for the Financial Market clarified that it neither supervises Orionx's closure nor possesses the authority to compel customer reimbursements. The regulator revealed it had rejected the exchange's application for formal authorization under Chile's Fintech Law in June, which limited the company to winding down existing operations. The lack of regulatory registration creates a significant challenge for affected customers seeking recovery.

Orionx has outlined a multi-stage restitution process currently in its initial phase, with the company committing to return as much customer value as possible while explicitly avoiding any guarantee of full recovery. The exchange is directing customers to document their holdings and pursue claims through direct negotiation or the Chilean court system. Regulatory authorities have advised affected parties to retain records and consider reporting suspected crimes to judicial authorities as an additional avenue for potential recourse.

The situation reflects broader concerns about cryptocurrency exchange operations in markets with limited regulatory frameworks, where asset custody practices and executive oversight may lack robust controls and accountability mechanisms.