Coinbase Restores Trading After Hours-Long AWS-Related Outage

Coinbase has brought trading back online after an hours-long disruption that prompted the exchange to pause order matching and temporarily limit trading features, CoinDesk reported. The company's support team first flagged the issue in a post on X, warning that customers "may experience performance degradation" tied to an AWS service outage. Coinbase later said the problem was part of a broader AWS disruption and that it was working to restore full service. Coinbase's realtime status page initially showed two networks affected. From 9:00 p.m. Eastern Time on May 7, users on ALEO and Solana experienced delays sending and receiving funds. Coinbase said buying and selling, along with fiat withdrawals and deposits on both networks, were not impacted. Several hours later, Coinbase upgraded the incident classification to "performance degradation" and said customers "may currently be unable to trade via web and mobile devices." The exchange later attributed the disruption to "elevated temperatures" in the AWS Availability Zone use1az4 in US East 1. As part of the restart process, Coinbase said markets would move into "cancelonly" mode before trading resumed. In this phase, open orders could be canceled, but no new market or limit orders would be accepted. Later updates shifted markets into auction mode, allowing users to place limit orders and view a reference opening price, though order matching would not occur for at least 10 minutes. After the auction, cross orders would be matched at the opening price. In its latest update, Coinbase said all markets on the Coinbase exchange have resumed trading. The outage comes days after Coinbase disclosed a 14% workforce reduction as it restructures operations around AI systems and cost controls amid a weak market environment. The Block reported Coinbase shares fell 2.53% in premarket trading on Friday.