Tether-backed Orionx to shut down after audit flags $7M custody gap

Orionx, a crypto exchange supported by Tether, has announced its permanent closure following an audit that uncovered a custody discrepancy. The audit identified that more than $7 million worth of customer assets had been moved to wallets outside of the company's custody, raising concerns about asset security and management.

The exchange stated that the discovery of the custody gap has led to the decision to shut down operations permanently. This event underscores the importance of robust custody practices and transparency in the management of customer assets within the crypto industry.

While the specific circumstances surrounding the asset transfers remain unclear, the incident has prompted discussions about security protocols and regulatory oversight for crypto exchanges, especially those with backing from stablecoins like Tether.

Customers of Orionx are advised to follow official communications for guidance on asset recovery and further updates. The closure marks a significant event in the ongoing efforts to improve security standards and trust in the crypto exchange ecosystem.