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- Binance paused withdrawals due to an AWS network failure but resumed them after security measures were implemented.
- KuCoin also faced disruptions from the same AWS outage but reassured users that assets and data were secure.
- Binance clarified that the technical issue did not affect all users, urging retrying for failed transactions.
Binance said on Tuesday that it halted withdrawals because one of its cloud-service providers experienced a problem. This interruption was due to a network failure at one of the regions of AWS’s data centers, as described on X. Amazon Computers and Binance clarified to customers that the team dew to working actively to solve the problem with Amazon Web Services (AWS).
Binance’s User Impact
In their statement, Binance clarified that the technical issue did not affect all their users. While some trading activities went on normally, there were others that failed. The platform urged the users who made mistakes to try their operations again. That was an unexpected issue occurring at Binance but unfortunately they did not describe the whole picture of the situation.
To mitigate the problem, Binance had to close the withdrawal option due to security concerns. The company adopted this measure to avoid possible risks and safeguard the users’ funds during the technology breakdown. Binance assured everyone that such a measure was temporary and taken due to security concerns. In the latest update, withdrawals were made possible again while the services started being restored.
Binance cooperated closely with AWS in an attempt to get the services back online as soon as possible. It explained to the users that it was working towards resolving the issue with all possible measures. Nevertheless, Binance reportedly restored all core services, and many others are now largely operational and working as expected. The platform also assured that users funds were not vulnerable to the issue at hand during the period that the breach was observed.
KuCoin Faces Similar Disruptions
The AWS outage also affected another large crypto exchange, KuCoin. KuCoin admitted that it has suffered similar problems because of the AWS outage. The exchange said this in an announcement on X, indicating that its technical team was already working to address the problem. KuCoin also dispelled any doubts by informing its users that all their assets were secure and all data was accessible.
In this case, it has not been clearly defined how many users were affected by the outages within the two exchanges. As for the number of affected users, Binance has not disclosed the exact overview. Still, both platforms started using again and tried to minimize the negative impact of the problem. Both Binance and KuCoin have been actively working to avoid similar incidents from happening in the future.
