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Coinbase AWS Outage Exposes Centralized Infrastructure Vulnerabilities

Coinbase AWS Outage Exposes Centralized Infrastructure Vulnerabilities

Published:
2025-10-22 16:00:22
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On October 23, 2025, cryptocurrency exchange Coinbase experienced a significant service disruption lasting over two hours due to an Amazon Web Services (AWS) outage that affected multiple major platforms globally. The technical issues with AWS infrastructure rendered Coinbase completely inaccessible to users worldwide, preventing account access and trade execution during the outage window. Despite the service interruption, Coinbase promptly assured customers that all funds remained secure and protected throughout the incident. This event underscores the inherent fragility and systemic risks associated with centralized cloud dependency in the cryptocurrency ecosystem. The outage highlights how even major exchanges like Coinbase remain vulnerable to third-party infrastructure failures, raising important questions about decentralization and redundancy in digital asset platforms. While temporary, such disruptions can significantly impact trading activities and user confidence, particularly during volatile market conditions. The incident serves as a stark reminder of the ongoing challenges facing centralized exchanges as they balance scalability, security, and reliability in an increasingly interconnected technological landscape.

Coinbase Hit by AWS Outage, Users Temporarily Locked Out

Coinbase, among other major platforms, experienced a service disruption early Monday as Amazon Web Services faced technical issues. The outage lasted over two hours, rendering the exchange inaccessible to users globally.

Dependent on AWS infrastructure, Coinbase assured customers their funds remained secure despite the inability to access accounts or execute trades. The incident highlights the fragility of centralized cloud dependencies in crypto markets.

Robinhood, Snapchat, and Xbox Network were similarly affected by the AWS downtime, demonstrating the broad impact of single-point failures in modern web architecture.

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

Global internet infrastructure faced dual disruptions as China accused the U.S. of state-sponsored hacking while Amazon Web Services suffered a widespread outage. The crypto sector, including exchange giant Coinbase, was caught in the crossfire—highlighting the industry's reliance on centralized web services despite its decentralized ethos.

Beijing's Ministry of State Security alleges the NSA infiltrated China's National Time Service Center, a critical synchronization hub for financial and defense systems. The claimed attack, reportedly involving 42 cyber tools since March 2022, raises tensions amid already strained U.S.-China relations.

AWS's simultaneous outage compounded the chaos, knocking out trading platforms like Coinbase, Venmo, and Robinhood. The unconnected yet coincidental events underscore the fragility of digital infrastructure that underpins both traditional finance and cryptocurrency markets.

SEI Crypto Shows Bullish Signals Amid Coinbase Outage and Altcoin Resurgence

As Coinbase experiences technical difficulties and altcoins stage a comeback, SEI (SEI/USDT) emerges as a standout performer. The Layer-1 blockchain, designed for high-speed decentralized finance and Web3 applications, is displaying early bullish indicators after weeks of subdued trading.

A golden cross formation on SEI's chart suggests potential upward momentum, with resistance currently holding at $0.203-$0.204. Bollinger Band tightening hints at impending volatility, while RSI levels NEAR 45 indicate cooling but persistent momentum. A break above resistance could propel SEI toward $0.25-$0.28, while failure to hold $0.197 may trigger rapid declines.

Singapore has positioned itself as a launchpad for SEI's next growth phase, capitalizing on the broader altcoin resurgence. The technical setup presents a classic squeeze scenario—market participants await the next decisive MOVE as infrastructure vulnerabilities highlight crypto's dependence on centralized cloud providers.

Bitcoin’s $1M Rise: Coinbase CEO Asserts It's Never Too Late to Invest

Coinbase CEO Brian Armstrong dismisses the notion that Bitcoin and ethereum have become prohibitively expensive for new investors. "It's never too late to start," he asserts, suggesting even fractional purchases can yield significant returns. Armstrong projects Bitcoin could reach $1 million by 2030, despite its current price hovering above $110,000.

Data from CoinLedger reveals fewer than 1 million wallets hold a full BTC, with critics arguing small investments are futile. Armstrong counters this narrative, positioning crypto as an enduring wealth-building opportunity. The debate highlights Bitcoin's evolving role from speculative asset to a mainstream store of value.

Crypto Leaders to Engage US Senators in Critical Regulation Talks

Top executives from Coinbase, Chainlink, Galaxy, Kraken, and Uniswap will convene with Democratic Senators on 22 October to discuss cryptocurrency market structure legislation. The meeting, spearheaded by Senator Kirsten Gillibrand, marks a pivotal effort to break the deadlock in bipartisan crypto regulation talks.

The industry's push comes amid heightened tensions following a leaked Democratic proposal on DeFi regulation, which sparked backlash over perceived overreach. With ten major crypto CEOs participating—including Brian Armstrong and Sergey Nazarov—the roundtable signals growing institutional engagement in shaping policy.

Market observers note the timing coincides with stalled negotiations and increasing pressure for clear regulatory frameworks. 'When giants like Coinbase and chainlink unite with lawmakers, it's a watershed moment,' said one DC insider. The outcome could determine whether the US adopts innovation-friendly rules or stifles its competitive edge.

XRP Ledger Stays Strong as Major AWS Outage Highlights Internet Fragility

A widespread AWS outage in the US-EAST-1 region disrupted services across the internet early Monday, affecting platforms like ChatGPT, Reddit, Fortnite, and Coinbase. Despite the chaos, the XRP Ledger (XRPL) continued operating seamlessly, drawing attention from the crypto community.

AWS attributed the outage to DNS resolution issues with the DynamoDB API, causing increased error rates and latencies. Recovery efforts began by 5:27 a.m. ET, though backlogs prolonged stabilization for some services. The incident underscored the vulnerabilities of centralized cloud infrastructure.

Coinbase, which relies on AWS, experienced temporary login issues and transaction delays. The exchange assured users that funds remained secure and later confirmed gradual service restoration. Meanwhile, XRPL's resilience during the outage highlighted the decentralized network's reliability.

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