Crypto trading was briefly thrown into chaos as Binance and KuCoin faced disruptions tied to a network issue at Amazon Web Services (AWS).
Temporary Suspension of Withdrawals
The trouble began when both exchanges paused withdrawals following a temporary network interruption at AWS. Binance acknowledged the problem in an X post, stating that the issue affected some services on its platform.
While some orders were still processed, others failed. Binance advised users to retry their transactions if they encountered errors.
Binance Reopens Fast, but Users Still Report Problems
To its credit, Binance reopened withdrawals just over five minutes after the initial issue was reported. However, users on X continued to report trouble placing trades, not only on Binance but on KuCoin as well.
Other Platforms Also Affected
The AWS-related outage didn’t stop with just exchanges. Crypto wallet Rabby and the on-chain analytics tool DeBank also experienced service disruptions. Both platforms confirmed the issues via X.
Why AWS Outages Matter
Amazon Web Services (AWS) is a cloud platform that powers websites, apps, and data infrastructure for thousands of companies. When AWS goes down, the ripple effect hits fast, impacting services across industries—including crypto exchanges that rely on it for uptime and reliability.
What This Means for Traders
Although Binance resumed withdrawals quickly, trading stability is not yet fully restored. This incident highlights the crypto industry’s vulnerability to centralized infrastructure providers like AWS.
For now, users are advised to monitor platform updates and avoid high-risk trades until systems are fully stable.
