AWS Outage Cripples Coinbase: Infrastructure Vulnerability Exposed

On October 21, 2025, the cryptocurrency industry faced a significant infrastructure crisis when Amazon Web Services (AWS) experienced a major outage in its US-East-1 region, severely disrupting operations at leading crypto exchange Coinbase and other major platforms. The outage originated from AWS's DynamoDB database service failure, which prevented proper translation of web addresses and caused widespread service interruptions across multiple sectors. Coinbase, as one of the world's largest cryptocurrency exchanges, saw its trading platform become inaccessible to users, highlighting the critical dependency of crypto institutions on centralized cloud infrastructure providers. The incident also impacted other prominent platforms including Snapchat, Robinhood, and Amazon's own services like Prime Video and Alexa, demonstrating the far-reaching consequences of single-point failures in modern digital infrastructure. This event serves as a stark reminder of the infrastructure challenges facing the cryptocurrency industry, even as it continues to mature and gain mainstream adoption. The outage underscores the importance of robust, decentralized infrastructure solutions and redundancy planning for crypto exchanges operating in an increasingly digital-first financial landscape. While the immediate impact on cryptocurrency markets appears limited, the incident raises important questions about the resilience of current infrastructure models and the need for more distributed approaches to ensure uninterrupted service in the rapidly evolving digital asset ecosystem.

AWS Outage Disrupts Coinbase and Other Major Platforms

Amazon Web Services (AWS) experienced a significant outage in its US-East-1 region, impacting a wide range of online services. The disruption affected high-profile platforms including crypto exchange Coinbase, social media app Snapchat, and trading platform Robinhood. Amazon's own services, such as Prime Video and Alexa, were also impaired.

The outage stemmed from AWS's DynamoDB database service, which failed to translate web addresses into IP addresses—a critical function for API-driven applications. AWS has initiated recovery procedures, but the incident underscores the fragility of centralized cloud infrastructure in supporting modern digital ecosystems.

For cryptocurrency markets, the disruption highlights the sector's growing dependence on traditional cloud providers. Coinbase's temporary inaccessibility during the outage may have contributed to minor liquidity constraints, though no major price anomalies were immediately observed across major digital assets.

Coinbase Faces Outages Amid AWS Disruption, Recovery Underway

Coinbase users encountered access issues as an Amazon Web Services outage disrupted the platform, alongside other major sites like Snapchat and Reddit. The exchange confirmed account access is gradually restoring, emphasizing that user funds remain secure.

The incident has reignited debates over reliance on single cloud providers. Coinbase's support team acknowledged the need for enhanced redundancy, stating infrastructure resilience is a priority. "We're reorganizing systems and boosting capacity to handle traffic surges," the company said in response to user concerns.

Market observers note the outage highlights systemic risks in crypto infrastructure. Rich Smith, a platform user, remarked: "For critical services, multi-cloud strategies aren't optional - they're existential." Coinbase maintains its engineering team is implementing upgrades to prevent recurrence.

BlackRock Launches Physically Backed Bitcoin ETP on London Stock Exchange

BlackRock has debuted its iShares Bitcoin Exchange-Traded Product (IB1T) on the London Stock Exchange, marking the first regulated Bitcoin ETP for UK retail investors. The physically backed product tracks Bitcoin's spot price directly, eliminating the need for investors to handle custody. Coinbase will secure the underlying BTC using multi-party computation and cold storage.

The FCA's recent easing of crypto-linked derivatives restrictions paved the way for this institutional milestone. BlackRock frames the launch as both a validation of crypto's maturity and a catalyst for broader UK market adoption. Market observers note this accelerates the convergence of traditional finance and digital assets.

China’s Cyberattack Claim, AWS Outage Rock the Internet – Coinbase Among Platforms Hit

Global internet infrastructure faced dual disruptions this week as China accused the U.S. of a state-sponsored cyberattack while Amazon Web Services suffered a crippling outage. The incidents exposed systemic vulnerabilities in centralized systems underpinning both traditional finance and crypto markets.

China's Ministry of State Security alleges the NSA infiltrated its National Time Service Center, potentially compromising synchronization across financial and defense systems. The claimed March 2022 intrusion reportedly employed 42 cyber tools to exfiltrate sensitive data.

Separately, AWS's Monday morning outage cascaded through crypto exchanges, temporarily disabling Coinbase's trading platform alongside fintech apps Venmo and Robinhood. The concurrent events highlight the crypto industry's lingering dependence on traditional web infrastructure despite its decentralized aspirations.

Ripple, Coinbase Join Senate Talks as Crypto ETF Rules Hang in Balance

Major cryptocurrency firms including Ripple and Coinbase are engaging in critical discussions with Senate Democrats to address pending legislation on crypto ETFs. Senator Kirsten Gillibrand is spearheading the roundtable, aiming to break the deadlock in bipartisan negotiations over U.S. crypto market structure rules.

Executives from Uniswap, Kraken, Chainlink, Circle, and Galaxy Digital are set to participate, underscoring the industry's push for regulatory clarity. The meeting comes as Republicans and Democrats remain divided, with competing proposals on the table—one focusing on defining regulatory roles and token classifications, the other targeting illicit activities in decentralized finance.

The urgency for federal rules has intensified amid growing discussions around crypto ETFs. Coinbase CEO Brian Armstrong and other top executives are expected to advocate for coherent frameworks that balance innovation with oversight.

XRP Ledger Demonstrates Resilience During Major AWS Outage

A widespread AWS outage in the US-EAST-1 region disrupted services across the internet, affecting platforms like ChatGPT, Reddit, and Coinbase. The incident, caused by DNS resolution issues with the DynamoDB API, highlighted the fragility of centralized cloud infrastructure.

While major services struggled, the XRP Ledger continued operating without interruption, closing blocks as usual. This performance underscores the decentralized nature of blockchain networks compared to traditional cloud-dependent systems.

Coinbase, which relies on AWS infrastructure, experienced login issues and transaction delays during the outage. The exchange confirmed user funds remained SAFE throughout the incident, with services gradually restoring as AWS recovered.