Coinbase Faces Service Disruption After AWS Data Center Heat Issue

Highlights:

• Coinbase began restoring trading after an Amazon Web Services outage disrupted its platform services.
• The exchange moved markets into Cancel Only mode before allowing full trading activity again.
• The outage came shortly after Coinbase reported strong market share but a Q1 net loss.

Coinbase experienced a service disruption late Thursday after an Amazon Web Services (AWS) outage affected parts of its trading platform. The outage caused slow and degraded performance on Coinbase’s web and mobile apps. Some users were unable to complete transactions during the incident. However, Coinbase assured customers that their funds remained safe. The exchange later said the issue was linked to increased temperatures in the affected AWS.

Coinbase Moves Markets Into Cancel Only Mode

According to the latest update on Coinbase’s status page, the platform was moving toward recovery. At 9:52 p.m. PDT on May 7, Coinbase said it would begin re-enabling trading across its markets. The company said all markets would first be placed in “Cancel Only” mode before normal trading fully resumed. This means users could cancel their existing orders, but they could not place new trades until Coinbase completed the reopening process.

The outage affected Coinbase at a sensitive time because crypto markets operate all day and all night. Unlike stock markets, crypto trading does not close at the end of a business day. A service problem during active market hours can stop users from entering trades, closing positions, or managing risk.

Update: this issue is related to a broader AWS outage. We're monitoring closely and working to restore full service.

We'll continue to update. Your funds are safe.

Track AWS status here: https://t.co/BGroEPQHZC

— Coinbase Support (@CoinbaseSupport) May 8, 2026

The exchange listed several affected services on its status page during the disruption. Coinbase Website, Coinbase Mobile, Coinbase Advanced Trade, and Coinbase Onramp showed degraded performance, while several other services, including derivatives, the API, and major digital currency networks, were marked operational.

Amazon Web Services said it was trying to fix a cooling problem at its Northern Virginia data center after the issue disrupted Coinbase and other online platforms. In its Friday update, Amazon’s cloud division said the situation was starting to improve. It also said its teams were working to bring temperatures back to normal and restore the affected server racks in the use1-az4 Availability Zone of the US-EAST-1 Region. FanDuel, a United States-based gambling company, also reported problems linked to the same Amazon Web Services disruption.

At this time, the issue appears to be related to a broader global AWS outage. We understand how frustrating this can be and appreciate your patience while services are restored.

— FanDuel Customer Support (@FanDuel_Support) May 8, 2026

Q1 Results Show Strong Share but Net Loss

The outage came shortly after Coinbase released its Q1 results and held its earnings call on May 7. In its official earnings deck, the company said it reached an all-time high in crypto trading volume market share. The company said the gain came from product innovation and growth in derivatives.

Coinbase also reported several strong operating points. Average USDC held in Coinbase products reached $19 billion in Q1. Subscription and services revenue made up 44% of total net revenue, the highest mix in the company’s history. The company also said it had 12 product lines generating more than $100 million in annualized revenue.

However, the quarter also showed pressure on profit. The firm posted a $394.1 million GAAP net loss for Q1, while Adjusted EBITDA declined 67% year over year. It also reported that total crypto market trading volumes fell more than 28% quarter over quarter, while spot trading volumes fell 37%.

The company’s official deck showed that derivatives trading volume grew 169% year over year on a trailing twelve-month basis. Coinbase also highlighted Base, its layer-2 network, and stablecoin activity as major parts of its long-term strategy. For the second quarter, Coinbase expects subscription and services revenue to be between $565 million and $645 million. The company also expects a one-time restructuring cost of $50 million to $60 million.