Binance temporarily suspended withdrawals due to an Amazon Web Services (AWS) data center outage.
Several crypto exchanges’ users are reporting issues with executing trades due to the AWS issue. Leading crypto exchange platform, Binance, is facing an issue with executing crypto trades because of an Amazon Web Services data center outage. It temporarily suspended withdrawals after multiple transaction failures. KuCoin and MEXC operations were also impacted, raising concerns about the dependency on cloud infrastructure. Binance promptly responded to the issue and made a post addressing its community on its official X account. It stated that the problem is with the Amazon Web3 Services data center, and their team is working with it to resolve the issue. The exchange mentioned that some transactions are failing, while some transactions are successful.
The crypto exchange that handles a large amount of volume every day had to suspend its withdrawal service because of this issue. In a later announcement, it assured users that services are starting to recover and resume as usual.
AWS Data Center Outage Impacted Crypto Exchanges and Web3 Service Providers
The AWS data center outage issue impacted several other platforms apart from Binance. KuCoin has also made an official statement regarding the same and assured that the platform services are fully restored after temporary disturbance. Other Web3 service providers, such as Rabby and DeBank, also experienced issues due to Amazon Web Service data outage.
This is not the first time a cloud infrastructure provider has experienced data center outage issues. The AWS data center failure happened in 2021 as well and impacted several applications across the globe.
A data center failure such as this reminds us of the risk of single points of failure. Even though blockchain and cryptocurrencies have the potential to decentralize data ownership and eliminate single points of failure, centralized crypto exchanges are still prone to these issues.
