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Major cryptocurrency exchange Coinbase successfully resolved a three-hour system outage that prevented users from accessing their accounts.
The company announced the resolution of the incident via an update on its website. Before this, Coinbase had notified users of the interruption and assured them of the security of their funds.
Coinbase Outage Leads to Halted Withdrawals
Coinbase did not disclose the primary cause of the outage, but it promised to conduct a thorough investigation to identify the root cause and prevent similar incidents.
Coinbase is now fully recovered. We appreciate your patience and apologize for the inconvenience. https://t.co/AAzEMPaJGL
— Coinbase Support (@CoinbaseSupport) May 14, 2024
The Coinbase outage began at 4:19 a.m. UTC and affected both the exchange’s website and mobile app, halting users’ trading activities.
As a result, all attempts to visit the Coinbase website during that period displayed a “503 Service Temporarily Unavailable” error message, which is a common error message for overloaded servers.
The outage was a major disruption to Coinbase’s operations. The exchange is the world’s second-largest trading platform, with a 24-hour trading volume of $2.4 billion.
Coinbase is experiencing a system wide outage. We are investigating this issue and working on a solution. Please see https://t.co/a3pl4WiDhZ for updates. Your funds are safe.
— Coinbase Support (@CoinbaseSupport) May 14, 2024
Despite assurances that user funds were safe, many users reported ongoing technical difficulties, particularly with crypto transfers and cash withdrawals, despite Coinbase’s announcement that the system was fully operational.
Pseudonymous X user Rocket commented that Coinbase outage resolution was false “as millions of people are still unable to withdraw or transfer their assets.”
https://twitter.com/rockethuncho/status/1790287459382940071
In response, the Coinbase support team acknowledged the ongoing issues and worked diligently to resolve withdrawals and cryptocurrency transfer problems.
We are sorry for the inconvenience, rocket. Our team is actively working towards a resolution. While we can't provide a specific timeline for the fix, we suggest that you keep checking your account for updates. 1/2
^KZ https://t.co/lVqd7e12Qg— Coinbase Support (@CoinbaseSupport) May 14, 2024
However, they did not provide a specific timeline for when the issues would be fully resolved.
Coinbase Outage Occurs Amid Crypto Ruffle and Stock Decline
Interestingly, Coinbase’s outage coincided with a slight downturn in cryptocurrency prices.
Bitcoin was trading at $62,000 before the Coinbase interruption disclosure. Following the announcement, its price dipped to $61,600. Similarly, Ether, the second-largest cryptocurrency, experienced a 1.4% decline, trading at $2,913.
Coinbase shares (COIN) also experienced a downtrend in the early hours of May 14. While there are speculations that the exchange interruption was a major driver of this trend, the actual cause is yet to be determined.
