00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Coinbase said an overheating issue inside an Amazon Web Services data center
00:06caused an outage this week that disrupted trading and withdrawals,
00:10according to comments from CEO Brian Armstrong on X.
00:14Armstrong said multiple chillers failed inside an AWS facility,
00:18causing a room to overheat and impacting Coinbase systems.
00:22The outage came after Coinbase reported weaker than expected quarterly results
00:26and announced plans to cut about 14% of its workforce as it pushes to become AI native.
00:32Armstrong said Coinbase's exchange architecture was more exposed
00:36because trading systems are optimized for latency and client co-location.
00:41Coinbase said customer funds remained safe during the disruption.
00:45The outage highlighted how many major crypto exchanges still rely on centralized cloud providers
00:50like Amazon Web Services, despite the industry's focus on decentralization.
00:55For all things money, visit Benzinga.com.
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