Coinbase, a leading cryptocurrency exchange (CEX), encountered a system-wide outage and displayed an alert on the website access interface of many users.
Once again, a temporary technical glitch impacted the smooth operations of Coinbase, displaying “503 Service Temporarily Unavailable”. Users shared concerns across social media platforms. Some users reportedly were unable to transfer funds.
Current Status Of Coinbase’s Outage Issue
On May 13, Coinbase’s userbase experienced a technical issue with the exchange and faced problems while sending crypto or withdrawing fiat. The CEX took to X to communicate the same and assure the funds’ safety.
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 technical glitch remained under investigation for a few hours. Eventually, the technical team identified and fixed the issues. Coinbase’s latest came as a breath of relief for users as the exchange announced the resolution of the issue.
Coinbase is now fully recovered. We appreciate your patience and apologize for the inconvenience. https://t.co/AAzEMPaJGL
— Coinbase Support (@CoinbaseSupport) May 14, 2024
“Coinbase is now fully recovered. We appreciate your patience and apologize for the inconvenience.”, the tweet added.
Apart from this, the exchange had undergone several other challenges including Retail login errors, new card payment method issues, delayed sends/ receives, Zcash delayed sends, and many more.
Notably, several expressed disappointment and frustration on social media, highlighting how the exchange underwent outages frequently despite being a multi-billion dollar company.
Coinbase Losing Top Spot Among Cryptocurrency Exchanges?
Coinbase doesn’t fare well among competitors when considering transaction fees as a metric. The exchange charges over 0.5% to 4.5% in transaction fees whereas Binance charges around 0.10% and Kraken takes around 0.9% to 1.5% per transaction.
Apart from this, the ongoing legal war between Coinbase and the Securities and Exchange Commission (SEC) has also impacted the exchange’s charm.
Coinbase Vs SEC: Has The Legal War Ended?
In June 2023, the SEC sued Coinbase for operating as an unregistered broker and exchange as well as violating numerous federal securities laws. According to the SEC, Coinbase violated laws under Sections 5, 6,15(a), and 17A(b) of the Securities Exchange Act of 1934.
The agency demanded the exchange to be “permanently restrained and enjoined”. Coinbase, on the other side, filed a request to pursue an interlocutory appeal on investment contracts.
However, the court had addressed and rejected several arguments that Coinbase made and cleared the case to proceed. The final decision on the case is still pending.
