Binance and Other Crypto Exchanges Hit by AWS Outage

AWS Outage Exposes Centralisation Risks in Cryptocurrency Infrastructure

A recent technical malfunction at Amazon Web Services (AWS) has highlighted the cryptocurrency industry's reliance on centralised infrastructure, raising concerns about the sector's resilience and the true extent of its decentralisation.

Service Disruptions Across Major Exchanges

On April 15, 2025, a connectivity issue at AWS's Tokyo data centre caused widespread service disruptions across several major cryptocurrency exchanges, including Binance, KuCoin, and MEXC. Binance, the world's largest crypto exchange by trading volume, temporarily suspended user withdrawals for approximately 23 minutes as a precautionary measure. The exchange assured users that their assets remained secure during the interruption.

KuCoin also reported temporary service disruptions, stating that their technical team was working diligently to restore full functionality. The exchange confirmed that no user data or assets were compromised during the outage. Similarly, MEXC experienced issues such as abnormal chart displays and delays in asset transfers for spot trading. The platform pledged to compensate users for any losses incurred due to the disruption.

AWS Confirms the Issue

AWS acknowledged the connectivity problem, which began at 1:15 a.m. PDT and was resolved by 1:51 a.m. PDT. The issue affected at least 12 services within the Tokyo region. AWS stated that they were monitoring the situation to ensure stability and would provide updates as necessary.

Wider Impact on the Crypto Ecosystem

Beyond the major exchanges, other platforms and wallet providers, including Coinstore, Gate.io, DeBank, Rabby Wallet, and Weex, also experienced service interruptions. These entities, like many in the crypto industry, rely on AWS's robust cloud infrastructure to handle large volumes of transactions efficiently. The outage underscored the vulnerability of the crypto ecosystem to disruptions in centralised cloud services.

Source: X

Debate Over Decentralisation Intensifies

The incident has reignited discussions about the crypto industry's dependence on centralised infrastructure. Critics argue that such reliance contradicts the foundational principles of decentralisation that underpin blockchain technology. Edmund Chua, head of the mETH Protocol, remarked, "AWS down and 90% of crypto is down," highlighting the irony of the situation.

Even decentralised exchanges (DEXs) were not immune. dYdX, a prominent DEX, experienced downtime due to its reliance on AWS for certain services. The exchange acknowledged the issue, stating, "Unfortunately, there are still some parts of the exchange that rely on centralized services (AWS in this case). We are deeply committed to fully decentralizing and this remains one of our top priorities as we continue to iterate on the protocol."

Calls for Decentralised Alternatives

In response to the outage, there is a growing call within the crypto community to explore and adopt decentralised alternatives to centralised cloud services. Projects like Filecoin (decentralised storage), Akash Network (decentralised computing), and Render Network (decentralised GPU computing) are gaining attention as potential solutions to mitigate the risks associated with centralised infrastructure.

Conclusion

The AWS outage serves as a stark reminder of the crypto industry's current dependence on centralised services, exposing vulnerabilities that could undermine the sector's growth and stability. As the industry continues to evolve, there is an urgent need to address these dependencies and invest in truly decentralised infrastructure to uphold the core principles of blockchain technology.

Writer @Erlin

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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