Coinbase, the biggest cryptocurrency exchange in the US, experienced a system-wide outage that affected users during the peak of Bitcoin’s fluctuation. The disruption, which hit both the Coinbase website and the mobile app, forced the users to face the “503 Service Temporarily Unavailable” error message.
Coinbase outage
The outage at Coinbase could not have come at a worse time. It coincided with the bitcoin price change, and hence, users were concerned about Coinbase’s ability to handle surges in user activity efficiently.
Coinbase is experiencing a system wide outage. We are investigating this issue and working on a solution. Please see https://t.co/a3pl4WiDhZ for updates. Your funds are safe.
— Coinbase Support (@CoinbaseSupport) May 14, 2024
The Coinbase was back online after about four hours of outage, and they let out the good news that their user’s funds were safe. Nonetheless, the outage has pointed out the problems that are returning repeatedly in the platform’s stability when the market is busy.
This problem is not a unique Coinbase case; the exchange has faced the same technical difficulties during the previous times of high trading volumes.
Coinbase regulatory scrutiny
The firm encounters more issues, such as the legal check from regulatory bodies like the U. S. Securities and Exchange Commission (SEC).
In the latest case, a U.S. District Court Judge decided that the SEC’s lawsuit against Coinbase has enough grounds to proceed. The lawsuit claims Coinbase is an illegal, unregistered securities exchange, broker, and clearing agency. This court case throws another aspect of the exchange and its users into limbo.