SKN | Coinbase Trading Disrupted After AWS Data Center Overheating Incident

Key Points:

• Coinbase temporarily placed markets into “cancel only” mode after an overheating issue at an Amazon Web Services data center disrupted • trading activity.

• The incident affected AWS infrastructure in Northern Virginia, causing degraded performance across multiple online platforms and services.

• Coinbase said customer funds remained safe while teams worked to restore full platform functionality.

AWS Data Center Issue Triggers Service Disruptions

Amazon Web Services confirmed Friday that one of its Northern Virginia data centers experienced elevated temperatures that disrupted hardware operations and affected services relying on the impacted infrastructure.

AWS stated it had begun observing early signs of recovery while engineers worked to restore cooling systems and return affected racks online within the impacted availability zone in the US-EAST-1 region.

The company added that traffic had been rerouted away from the affected systems as part of recovery efforts.

Coinbase Experiences Trading Interruptions

The outage significantly affected crypto exchange Coinbase, with users reporting degraded performance on both web and mobile applications.

Coinbase said some customers temporarily experienced issues transacting on the platform as the company implemented emergency operational measures.

To stabilize the system, Coinbase placed its markets into “cancel only” mode, allowing users to cancel existing orders while temporarily preventing new trades from being executed.

The exchange later stated that trading functionality would gradually begin returning as systems stabilized.

Other Platforms Also Impacted

The AWS disruption extended beyond the crypto industry, with sports betting platform FanDuel also reporting service interruptions tied to the same infrastructure issue.

The incident highlighted how large-scale cloud infrastructure outages can create ripple effects across financial technology, online gaming, and digital asset platforms that rely heavily on centralized cloud providers.

Crypto Industry Continues Reliance on Cloud Infrastructure

Major cryptocurrency exchanges and blockchain companies increasingly depend on cloud infrastructure providers such as AWS to support trading systems, storage, and application services.

While cloud providers offer scalability and operational flexibility, outages involving data centers or infrastructure failures can temporarily disrupt trading access and customer operations during periods of market volatility.

The event also renewed discussion around infrastructure resilience and redundancy within the digital asset industry as exchanges continue expanding globally.

AWS Working Toward Full Recovery

AWS said incremental progress had been made restoring cooling systems and recovering affected hardware after the power-related incident caused temperature increases inside the data center environment.

The company continues working toward restoring normal operating conditions across the impacted availability zone while monitoring remaining service impairments.

Coinbase has not indicated any long-term operational impact from the outage and reiterated that customer assets remained secure throughout the disruption.