Coinbase Outage Disrupts Crypto Trading and Transfers Amid Amazon Service Failure

Coinbase users faced hours of service outages late Thursday and early Friday after disruptions to Amazon Web Services infrastructure disrupted key trading systems, the cryptocurrency exchange said.

In one after on Friday morning

“Around 8:00 PM ET, Coinbase systems discovered elevated error rates across multiple services, which the company traced to errors in the AWS Availability Zone use1-az4 in the US-EAST-1 region,” Coinbase wrote.

The outage follows another AWS-related disruption in October, which temporarily took Coinbase and Robinhood offline and left some users unable to access their accounts or make trades.

Coinbase said its systems are designed to recover from an outage in a single availability zone. In this case, however, the company said outages affected multiple AWS zones, leading to what it described as an “extended outage” of key commerce services while AWS worked to restore temperature controls and other managed services.

Amazon disputed Coinbase’s description of the outage and was telling Declutter that ultimately only one availability zone was affected.

Users reported issues accessing the Coinbase app, transferring funds, and making transactions. Down detector reports peaked around 6:00 PM ET and remained elevated overnight before declining Friday morning. About 33% of the reports related to money transfers, another 33% related to trading issues, and about 29% related to the Coinbase mobile app.

Coinbase said the primary issue has been resolved and has referred users with account-related questions to Coinbase Support.

“Our team will conduct a full analysis,” Coinbase wrote in its X-post. “Details may change as our investigation continues and more information is received from AWS’s official retrospective once it is published.”

Coinbase did not immediately respond to a request for comment from Declutter.

The outage comes as Coinbase moves deeper into cloud-based AI and stablecoin infrastructure through partnerships with companies like Amazon Web Services and Stripe, while also restructuring around what CEO Brian Armstrong has described as an AI-first business model.

“AI is profoundly changing the way businesses operate, and we are reshaping Coinbase to lead in this new era,” Armstrong wrote on X. “This is a new way of working, and we must leverage AI in every facet of our work.”

Editor’s note: This story was updated after publication with comments from Amazon disputing Coinbase’s description of the outage.