Coinbase restored trading after an AWS-linked outage disrupted exchange operations and paused order matching.
Coinbase suspended order matching and restricted trading functions for several hours on May 8 following a disruption tied to an Amazon Web Services outage, before restoring full exchange operations later in the day.
The exchange's support team first flagged the issue on X, stating that customers may be experiencing degraded performance due to an AWS outage. A subsequent update attributed the disruption to a broader AWS outage affecting service restoration timelines.
According to Coinbase's live status page, the incident initially affected two networks. Users began experiencing delayed sends and receives for Solana (SOL) and ALEO starting at 9:00 pm ET on May 7. Coinbase said buys, sells, and fiat withdrawals and deposits remained unaffected for both networks during that window.
The company later escalated the incident to degraded performance, warning that customers may be unable to transact on the web and mobile. Coinbase attributed the root cause to increased temperatures in AWS Availability Zone use1-az4 within the US-EAST-1 region.
As part of its recovery process, Coinbase moved all markets into "Cancel Only" mode, during which resting orders remained cancelable but no new market or limit orders were accepted. Markets then transitioned into auction mode, allowing customers to post limit orders and view indicative opening prices while order matching was paused for a minimum of 10 minutes. Crossed orders were matched at the opening price once each auction concluded.
Coinbase Support announced on X that all markets had been re-enabled for trading on Coinbase Exchange following the phased restoration process.
Coinbase shares were down 2.53% in pre-market trading on Friday. The outage came days after the company disclosed a 14% workforce reduction as it restructures operations around AI-focused systems and cost controls amid weaker market conditions.
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