Tether-Backed Exchange Orionx to Shut Down After Audit Reveals $7M Custody Gap

WHY IT MATTERS

When you deposit money or crypto on an exchange, the exchange is supposed to keep those assets safe — this is called "custody." Think of it like a bank vault: the exchange promises your funds are there when you need them. A "custody gap" means an audit found that some of the money that should have been in the vault was missing or had been moved elsewhere. This is a significant concern because it echoes past incidents in crypto where exchanges mishandled customer funds, most notably the collapse of FTX in 2022. For newcomers, this story highlights why it is important to understand how and where your assets are stored, and why independent audits and regulatory oversight matter in the crypto industry.