Coinbase Suffers Second AWS Outage Since October As Frustrated Users Question Exchange Reliability

Coinbase users were hit with major trading issues on Thursday after an outage tied to Amazon Web Services (AWS) disrupted the exchange’s systems. The problems started after overheating issues impacted an AWS data center in Northern Virginia, affecting services inside the US-EAST-1 region.

The exchange confirmed that some users were experiencing “degraded performance,” with many traders reporting frozen charts, failed orders, and delayed price updates across both desktop and mobile apps. Coinbase later said the issue was linked to the AWS Availability Zone “use1-az4,” where temperatures had spiked unexpectedly.

Crypto traderLuke Cannon claimed there had not been a Bitcoin trade on Coinbase for over an hour during the disruption. He also pointed out that Coinbase’s order books were showing prices far above competitors like Binance and Hyperliquid, while many user orders simply failed to execute.

Coinbase assured users that funds remained safe and said trading would gradually resume through a “Cancel Only” mode before fully reopening markets.

The affected assets include KAITO, SENT, TOSHI, AKT, ANIME, ZK, KERNEL, and BARD. This is now the second major AWS-related Coinbase outage since October 2025.

Terrible Timing After Earnings Disaster

The outage came at one of the worst possible moments for Coinbase.

Just a day earlier, the exchange reported disappointing quarterly earnings that shocked investors. Coinbase posted a surprise loss of $1.49 per share, while revenue came in at $1.41 billion, missing analyst expectations of roughly $1.52 billion. Following the weak results, Coinbase shares dropped around 4% in after-hours trading.

The company is currently trying to evolve beyond simple crypto trading by building what executives describe as an “everything exchange,” expanding into stablecoins, tokenized real-world assets, and broader financial services. However, the transition has not been smooth so far.

Coinbase also recently announced layoffs affecting nearly 14% of its workforce, cutting around 700 jobs as part of broader cost-reduction efforts.

Community Frustration Builds Again

After the weak earnings report, the outage quickly triggered frustration across crypto social media. Many users questioned how a problem in just one Amazon AWS region could end up affecting such a massive exchange like Coinbase. Others pointed out that Coinbase has faced similar outages during busy market periods for years now.

Some traders defended the exchange, saying the AWS issue was largely outside Coinbase’s control