Coinbase experienced a system wide outage. Now resolved.

Coinbase suffered a major, system‑wide outage on the evening of 7 May 2026 that disrupted trading and core services for several hours before being fully restored. Coinbase has since confirmed the issue is resolved and attributed the disruption primarily to a failure in an Amazon Web Services (AWS) data center, which affected multiple availability zones. According to Coinbase’s post‑incident summary and public statements, the outage began around 8:00 p.m. ET on May 7 when internal systems detected high error rates across multiple services. Coinbase traced the problem to AWS infrastructure problems in the us‑east‑1 region (availability zone use1‑az4), where a cooling failure caused a thermal safety shutdown of hardware supporting Amazon EC2, EBS, and managed Kafka (MSK). This infrastructure failure impacted not only Coinbase but other internet services, and, in Coinbase’s case, it led to trading, deposits, withdrawals, and most user‑facing functionality becoming unavailable or severely degraded for roughly eight hours, with full recovery taking an additional twelve hours. Coinbase later reported that trading on its exchange largely halted by 7:48 p.m. ET, with staged restoration: cancel‑only mode in the early hours of May 8, broader trading resumption by around 3:49 a.m. ET, and full recovery of web and app trading and streaming backlogs later that morning and into the early afternoon. The incident matters because Coinbase is a major U.S. crypto exchange and infrastructure provider, so a system‑wide outage can affect liquidity, price discovery, and user access during volatile market conditions. At the time of the disruption, Bitcoin was trading near $62,000, and Coinbase was handling significant spot volume, amplifying concerns about reliability and concentration risk in centralized exchanges and their cloud providers. Coinbase has said it notified relevant regulators within required windows and is working with AWS to analyze the root cause, improve resilience to multi‑zone cloud failures, and enhance tooling and runbooks around its Kafka and infrastructure management to reduce the risk and impact of similar outages in the future.

✨ AI-generated background, compiled from web sources — not editorial content.

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