TLDR
- AWS outage affected Coinbase’s mobile app, preventing logins and withdrawals.
- Robinhood faced API issues and execution delays due to AWS disruption.
- The outage is the second significant AWS disruption since April 2025.
- Blockchain-based cloud infrastructure alternatives are gaining attention
A major outage in Amazon Web Services’ (AWS) Northern Virginia data center disrupted services across various sectors on Monday. Among those affected were major financial platforms like Coinbase and Robinhood. Users experienced difficulties accessing services, trading, and withdrawing funds as both platforms struggled with AWS-related issues. This event has reignited discussions about the vulnerabilities of relying on centralized cloud providers for critical services.
Disruption of Coinbase Services
Coinbase, one of the largest cryptocurrency exchanges, was significantly impacted by the AWS outage. The platform reported issues with its mobile application, which crashed, preventing users from logging in, placing orders, and withdrawing funds.
The problems were linked to increased error rates and latency within AWS services in the US-EAST-1 region. The disruption caused widespread frustration among users, particularly those needing to access or trade assets during a busy trading session.
“We can confirm global services and features that rely on US-EAST-1 have also recovered,” AWS said in a statement three hours after the issue was first reported. Coinbase also confirmed that the disruption was being actively addressed. “We’re seeing early signs of recovery,” Coinbase stated, as some users regained access to their accounts. The exchange has since resolved the issue, with full recovery taking several hours.
Robinhood Faces Trading Delays
Robinhood, a popular stock trading platform, also experienced disruptions due to the same AWS outage. The platform saw delays in trade executions and problems with its API, which affected its ability to process transactions. This caused inconvenience for users who were attempting to make trades or use specific features of the platform.
While Robinhood did not provide detailed information on the root cause of the issue, it acknowledged the connection to the AWS disruption and worked on resolving the problem. The platform’s performance issues were similar to those seen in Coinbase, with some users reporting latency when attempting to complete transactions.
Renewed Debate on Decentralized Infrastructure
The AWS outage has reignited calls for more decentralized infrastructure within the financial and crypto sectors. Many companies, particularly in the crypto space, have been increasingly vocal about the need to reduce reliance on centralized cloud providers.
Layer-1 blockchain companies, like Vanar Chain, are building decentralized cloud infrastructure solutions to address this issue. These alternatives aim to eliminate single points of failure that could disrupt critical services.
Vanar Chain, for example, has been developing blockchain-based cloud infrastructure that offers high data compression ratios and eliminates third-party dependency for data storage. Vanar CEO Jawad Ashraf explained that their technology allows files to be fully stored on-chain, reducing reliance on traditional cloud providers like AWS.
Other blockchain projects, including the Internet Computer protocol, Filecoin, and Akash Network, are also working to provide decentralized alternatives to traditional cloud computing. These networks offer decentralized storage, computing, and hosting across distributed nodes, making them more resilient to service outages.
Previous AWS Disruptions
This incident follows a similar AWS outage in April, which affected several large crypto exchanges, including Binance and KuCoin. During that event, AWS reported connectivity issues that led to usability problems for users on multiple platforms.
While the cause of the April outage was also related to connectivity, the severity of the disruption underscored the risk of relying heavily on a single cloud provider for critical infrastructure.
In both instances, AWS worked quickly to resolve the issues, but the outages highlighted the vulnerability of services that rely on centralized cloud platforms. The repeated disruptions have raised concerns about the potential long-term impact on platforms that handle sensitive financial and trading data.
