# Coinbase Crippled By 7-Hour Outage Tied to AWS Could Overheating

*Author: Jack Inabinet*
*Published: May 8, 2026*
*Source: https://www.bankless.com/read/news/coinbase-crippled-by-7-hour-outage-tied-to-aws-could-overheating*

---

Coinbase users were unable to trade for hours last night after a widespread AWS infrastructure failure disrupted the exchange’s core systems.

### What's the Scoop?
- **AWS Knockout: **Coinbase suffered a multi-hour outage on Thursday after an [overheating failure](https://www.analyticsinsight.net/news/aws-overheating-outage-disrupts-coinbase-and-fanduel-activities) impacted several Amazon Web Services (AWS) availability zones in the US-EAST-1 region, preventing users from executing trades across the crypto exchange's web and mobile platforms. Other platforms impacted by the service outage included sports gambling platform [FanDuel](https://bankless.ghost.io/rollup-cryptos-nasdaq-problem-the-clarity-act-saylor-selling-eth-l1-scaling/). 
- **Inauspicious Timing:** Earlier this week, Coinbase [announced](https://www.bankless.com/read/news/coinbase-cuts-14-of-staff-touts-ai-efficiency) that it was laying off 14% of its staff, attributing the headcount reduction partially to productivity gains from artificial intelligence and touting that AI enables even non-technical teams to ship production code. Immediately prior to its outage last night, Coinbase [posted](https://www.cnbc.com/2026/05/07/coinbase-coin-earnings-q1-2026.html) an earnings disappointment, revealing both top and bottom line misses for the first quarter of 2026.

> On May 7th Coinbase experienced service disruptions. Here’s a quick summary of what happened:→ Around 8PM ET, Coinbase systems flagged high error rates across multiple services.→ We traced these errors to amazon failures in Availability Zone (use1-az4) in the AWS US-EAST-1…— Coinbase Support (@CoinbaseSupport) [May 8, 2026](https://twitter.com/CoinbaseSupport/status/2052686304106746066?ref_src=twsrc%5Etfw)