Key Points:
The Coinbase outage was attributed to an error in the Coinbase Card reward service, causing display issues for users' points, but funds remain secure.
Some users are still facing difficulties with withdrawals and transfers despite Coinbase's assurance of system restoration.
Legal challenges from the SEC add to Coinbase's woes, with the court ruling that the lawsuit can proceed, casting uncertainty over the exchange's future.
Coinbase Support has identified the cause of the recent short-term outage experienced by its platform earlier this week.
Coinbase Outage Linked to Coinbase Card Error
The disruption was attributed to an error associated with the Coinbase Card reward service, which led to some users observing incorrect points displayed in their accounts. However, it reassures clients that their funds remain secure, emphasizing that the Coinbase outage was not triggered by any security breach. The Coinbase team has committed to addressing such issues to prevent their reoccurrence in the future.
This outage impacted the operations of Coinbase, a major U.S.-based cryptocurrency exchange, affecting customers' ability to engage in crypto transactions. Despite assurances from Coinbase that its systems have been restored, some users continue to face challenges with withdrawals and transfers. Despite the exchange's efforts, numerous users have reported ongoing difficulties, with many still unable to access their assets.
While the exact cause of the Coinbase outage has not been disclosed, such disruptions on centralized exchanges can significantly erode mainstream trust in the cryptocurrency industry. These platforms serve as the primary entry point for individuals entering digital asset investments due to their user-friendly interfaces.
SEC Lawsuit Adds to Coinbase's Challenges
This incident is not isolated to Coinbase; the exchange has previously encountered similar technical issues during periods of high trading volumes. Moreover, Coinbase is grappling with legal challenges from regulatory bodies such as the U.S. Securities and Exchange Commission (SEC).
In a recent development, a U.S. District Court Judge ruled that the SEC's lawsuit against Coinbase has sufficient grounds to proceed. The lawsuit alleges that Coinbase operates as an illegal, unregistered securities exchange, broker, and clearing agency, adding further uncertainty for the exchange and its users.
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