Coinbase resumed trading after an AWS outage in Northern Virginia disrupted its systems for almost seven hours on Friday. The crypto exchange said customer funds stayed safe, while trading, transfers, and normal app functions faced service problems during the incident.
Coinbase Global Inc. said trading services had resumed after a long outage stopped customers from using key exchange functions on Friday. The company linked the disruption to overheating at an Amazon Web Services data center in Northern Virginia.
The exchange first reported the issue at around 9 a.m. in Singapore. Trading activity later resumed by about 4 p.m., after the company moved through recovery steps. During the outage, some customers could not trade, transfer crypto assets, or use normal web and mobile services.
Coinbase said its systems entered ‘Cancel Only’ mode before trading reopened. In that mode, users could cancel existing orders, while new market and limit orders remained blocked. The crypto exchange later moved toward auction mode to support an orderly market reopening.
Amazon Web Services said the problem came from higher temperatures at its Northern Virginia facility. The affected zone was use1-az4 in the US-EAST-1 Region, one of AWS’s busiest cloud regions.
AWS said it was working to restore normal temperature levels and bring affected racks back online. The cloud provider also said it saw early recovery signs while teams worked on cooling systems and service restoration.
The outage affected Coinbase and other online services. FanDuel also reported service problems linked to the same AWS event. AWS said a related power loss affected some hardware, while traffic was moved away from the affected zone during recovery.
Coinbase told users that customer funds were safe. However, many users reported trading failures, transfer delays, and degraded platform access during the outage.
Coinbase repeatedly told customers that assets remained secure during the outage. The company said, “funds are safe,” while its teams worked with AWS to restore full service.
The exchange also said, “We will begin the process to re-enable trading on our markets shortly.” It added that all markets would enter ‘Cancel Only’ mode before trading resumed.
These statements came as users questioned when normal services would return. The outage also led to doubt among traders who could not react to market moves during the disruption. Some users reported problems on both web and mobile platforms.
The staged reopening helped Coinbase stabilize order books before allowing full trading. In auction mode, users could place limit orders, but trades did not match right away. The system used that period to set an opening price before execution resumed.
The Coinbase outage came during a hard week for the company. The exchange had announced job cuts affecting 14% of its approximately 5,000 workers. The company said the cuts were part of a plan to reduce management layers and shift more workers toward AI-related skills.
Coinbase also reported first-quarter revenue of $1.41 billion, down 31%. The figure missed market estimates. The company posted a net loss of $394 million for the quarter.
Chief Executive Officer Brian Armstrong said, “Non-technical teams are now shipping production code and many of our workflows are being automated.” The statement came as Coinbase explained its internal shift toward automation and AI skills.
Coinbase shares also fell about 3% in pre-market trading on Friday. The stock was also down about 15% for the year, adding market pressure after the outage and weak quarterly results.
Also Read: X Hit By Massive Outage, Platform Faces Login Issues & Feed Failures