Chilean crypto asset trading and custody platform Orionx said on September 3 (local time) that it had begun the process of permanently shutting down and had temporarily suspended customer withdrawals. The company said a forensic audit had identified transactions transferring more than $7 million in assets held in custody to wallets it does not manage.
Orionx said it had reported the matter to prosecutors and filed a criminal complaint against two former associates on September 2. These are the company’s claims, however, and responsibility and the final amount of losses remain to be determined through the investigation and court proceedings. The company said it suspended withdrawals to treat customers fairly and prevent customers who withdrew first from gaining an advantage.
The company said it had informed the authorities of its shutdown and asset return plan and was implementing the first phase. In its official Q&A, however, it said it currently could not guarantee the return of all customer assets and would assess each customer’s circumstances to return as much as possible. The amount to be returned to each customer and the timetable have not yet been finalized.
Meanwhile, Chile’s Financial Market Commission (CMF) reaffirmed on September 4 that Orionx and its activities were not subject to its supervision. The CMF said it had rejected the company’s application for registration and authorization in June, did not oversee its shutdown or liquidation process, and had no power to order the return of customer assets. Its position is that it does not supervise the process, regardless of the company’s statement that it informed the authorities of its asset return plan.