Coinbase experiences major outage as crypto prices plummet
Coinbase users are reporting difficulty withdrawing funds, heightening fears amid a widespread cryptocurrency price crash.
The company has confirmed the issues in a tweet Thursday. “We are aware that some customers are having issues trading and accessing accounts on Coinbase and Coinbase Pro,” the company said. “Your funds are safe and we are actively working on the matter. We will provide an update here soon.
Shortly after, the company indicated that the situation may resolve: “We are seeing recovery following the implementation of a fix, but our teams continue to monitor the situation.”
We are seeing recovery following the implementation of a fix, but our teams continue to monitor the situation. Rest assured that we are all on deck and that we will continue our work to ensure the good health of our services. https://t.co/N1t0FqMA5z
– Coinbase Support (@CoinbaseSupport) May 12, 2022
In communities on Reddit, users have reported continued delays in withdrawals, leaving thousands of dollars hanging in the balance. More recently, another user reported that he couldn’t access the app or website at all.
“Did the bear market crash their servers? the post reads. “Pretty scary if someone wants to make a quick trade.”
The downtime comes amid a widespread crash in cryptocurrency prices, adding particular urgency to transactions and withdrawals. Bitcoin fell below $30,000, losing over 25% of its value in a month. As in any financial crash, the price crash has caused many coin holders to sell their assets and tested the underlying financial infrastructure of many institutions.
As the leading cryptocurrency exchange and wallet service, Coinbase was particularly hard hit by the crash. The company reported a sharp drop in earnings earlier this week and its stock lost more than half its value in a week. Users were particularly shaken by a financial filing that suggested Coinbase account holders could be considered unsecured creditors in bankruptcy proceedings, seeming to suggest they could lose money from their accounts if the company became insolvent. Brian Armstrong, CEO of Coinbase contested the claimsclaiming that users’ funds were not at risk.
Coinbase did not immediately respond to a request for comment.