Chilean exchange Orionx halts operations and withdrawals amid $7M+ asset shortfall

iconKuCoinFlash
Share
AI summary iconSummary
Chilean crypto exchange news: Orionx has suspended operations and frozen withdrawals after a forensic audit revealed over $7 million in missing assets. The exchange alleges that two co-founders and former employees misappropriated funds between 2018 and 2021. Orionx has reported the case to Chile’s National Prosecution Office. The CMF confirmed that Orionx operated illegally under the Fintech Law. Users may not recover all their funds. The incident underscores the risks inherent in the crypto exchange sector, which is vulnerable to hacks.

Odaily Planet Daily reports: Chilean cryptocurrency exchange Orionx has announced the cessation of operations and the suspension of user withdrawals. A forensic audit revealed that over $7 million in custodied assets were transferred to wallets outside the company’s control, creating a funding shortfall.

Orionx has accused its two founding partners, Joaquín Díaz and Roberto Zibert, along with other former employees, of involvement in related transactions and has filed a complaint with Chile’s National Prosecutor’s Office. The complaint alleges that the transactions occurred between 2018 and 2021.

The Chilean Financial Market Commission (CMF) stated that Orionx is not authorized to provide cryptocurrency financial services and its operations do not comply with the FinTech Law. Orionx said it cannot guarantee users' full recovery of funds. (Bitcoin.com News)

Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information. Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.