Tether-backed crypto platform Orionx is shutting down for good. The decision comes on the heels of an audit that found over $7 million in customer assets were moved to wallets outside of the company’s custody.

What happened

Orionx announced it’s closing its doors for good, citing the audit’s findings: more than $7 million in client funds were transferred to addresses not controlled by their custody setup.

What the audit found

The audit highlighted a mismatch between the total client assets Orionx was responsible for and where the funds actually ended up. Investigators found that more than $7 million had been moved to wallets outside Orionx’s custody.

What this means for the market

This situation throws a spotlight on just how sensitive the crypto industry is when it comes to custody and safeguarding client assets. Any gap between what’s on the books and what’s actually held in custody can wreck trust and force brutal decisions—like shutting down the whole operation.