Monday, June 27, 2022

Coinbase Experiences Major Outage As Crypto Prices Plunge

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Coinbase users are reporting problems withdrawing funds, raising fears amid widespread cryptocurrency price crash.

The company confirmed the issues in a tweet on Thursday. “We are aware that some customers are having issues trading and opening accounts on Coinbase and Coinbase Pro,” the company said. “Your money is safe and we are actively working on the matter. We will provide an update here shortly.”

Shortly after, the company indicated that the situation may be resolved: “We are seeing recovery after implementing a solution, but our teams continue to monitor the situation.”

In communities on Reddit, users have reported rolling delays in withdrawals, leaving thousands of dollars on the balance sheet. More recently, another user reported that they were unable to access the app or website at all.

“Has the bear market crashed their servers?” the message reads† “Pretty scary when someone wants to make a quick transaction.”

The downtime comes amid a widespread crash in cryptocurrency prices, making transactions and withdrawals particularly urgent. Bitcoin has fallen below $30,000 and lost more than 25 percent of its value over the course of a month. As with any financial crash, the fall in price has prompted many coin holders to sell their assets and put the underlying financial infrastructure of many institutions to the test.

As the leading cryptocurrency exchange and wallet service, Coinbase has been hit particularly hard by the crash. Company reported a significant drop in sales earlier this week, and the stock has lost more than half of its value over the course of a week. Users were very shocked by a financial deposit that suggested Coinbase account holders could be considered unsecured creditors in bankruptcy proceedings, which seems to suggest they could lose money from their accounts if the company goes insolvent. Coinbase CEO Brian Armstrong disputed the claimssaying that user funds were not at risk.

Coinbase did not immediately respond to a request for comment.

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