Coinbase Suffers Critical Outage: Were Your Funds Safe?

Coinbase draws heat after a “system-wide” outage that left users stranded even after the exchange “fully recovered.”

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Created by Gabor Kovacs from DailyCoin
  • Coinbase suffered a system-wide outage on Tuesday.
  • The exchange has issued several alerts since the issue began.
  • Users contemplated whether funds were safe following the glitch.   

The largest crypto exchange in the U.S., Coinbase, suffered a critical “system-wide outage” on May 14, rendering the platform inaccessible via mobile phone or desktop for hours.

On Tuesday at around 4:15 AM UTC, Coinbase notified its users of the outage, noting that its team was investigating the issue and working on a solution. At the time, the exchange’s website displayed a “503 Service Temporarily Unavailable” error when accessed.

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As the investigation was underway, users contemplated whether their funds were safe. Even more intriguing, the exchange warned users about possible transaction failures after it claimed the issue was resolved.

Coinbase ‘Resolves ‘System Outage

Hours after the glitch, Coinbase reported that the “system-wide” outage had been resolved.

“Coinbase is now fully recovered. We appreciate your patience and apologize for the inconvenience,” the exchange wrote on X.

However, while the alert was a relief to some confused users who hadn’t been issued with a detailed explanation of what transpired as of press time, it didn’t inspire confidence among some X users.

Specifically, a user by the name “rocket” responded to Coinbase’s alert, terming the tweet “false.”

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“@X can we get community notes here. This tweet is false as millions of people are still unable to withdraw or transfer their assets.” The user wrote.

Tens of other users claimed that they couldn’t send or withdraw their funds, so Coinbase issued another alert.

Were Funds Safe During the Outage?

While all the alerts issued by Coinbase since the start of the outage and after the supposed recovery reiterated that user funds were safe, the exchange acknowledged that users might experience issues when sending crypto or withdrawing fiat from its platform.

“Some users may still experience failures when sending crypto or withdrawing fiat. We are continuing to investigate this issue and will provide an update shortly. Rest assured, your funds are safe,” Coinbase stated.

At last check, the exchange had issued another alert, claiming “the issue has been identified and a fix is being implemented.” In the meantime, it seems users will believe that funds are safe if they can conduct normal transfers without glitches.

Read why Coinbase is pushing for clear crypto regulation in the U.S.:
Coinbase Pushes for Clearer Crypto Regulation, SEC Says No

Stay updated on the latest happenings in the Coinbase-led crypto advocacy group:
MoonPay Backs ‘Stand With Crypto’ Group with a Donation

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.