Amazon Web Services (AWS) Outage Freezes Cryptocurrency Withdrawals on Binance, KuCoin, and MEXC

On April 15, 2025, a power failure at an Amazon Web Services (AWS) data center froze withdrawals and trading on major cryptocurrency exchanges

Major cryptocurrency exchanges, including Binance, KuCoin, and MEXC, experienced a freeze in withdrawals and trading on April 15, 2025, following a power failure at an Amazon Web Services (AWS) data center.

The outage, which began around 12:40 A.M. and lasted until 1:43 A.M. PDT, affected 15 AWS services, including Amazon WorkSpaces and CloudWatch, in the us-east-1 region. While AWS described the issue as "connectivity problems" with Elastic Compute Cloud in Tokyo, which were resolved quickly, crypto users saw it differently.

"We are aware of an issue impacting some services on the #Binance platform due to a temporary network interruption in the AWS data center. Some orders are still successful, but some are failing," Binance stated on X.

"If users' orders failed, they may keep retrying. Our team is working closely with AWS to resolve this quickly."

The exchange also suspended withdrawals as a result, adding to the user frustration.

KuCoin CEO BC Wong confirmed a brief disruption to their services, which were restored within a few hours.

"Good morning! There was a brief disruption to some services earlier today due to a technical issue identified and resolved by AWS. We have fully restored services and all user funds remain safe."

The incident, which occurred as major crypto platforms were handling increased trading volumes, sparked outrage among users.

Just days earlier, Amazon CEO Andy Jassy's annual shareholder letter highlighted AWS's 19% revenue growth and its role in supporting innovators.

"The faster demand grows, the more infrastructure we need to build to meet it. And we're committed to doing both. We'll keep innovating across all of our businesses and investing in the infrastructure to support the world's innovators," wrote Jassy.

However, this outage at AWS, a backbone for fintech, exposes the fragility of centralized systems and the single points of failure they present.

As Editor at Large for DisruptionBanking, I've been tracking blockchain's potential to transform markets, covering projects like Quant Token, Hedera, and more. This outage is a paradox—crypto champions decentralization, yet many exchanges rely on AWS, which can shut down their services.

"This is crazy. How can major crypto exchanges be down for over an hour with no warning?" one X post read. "Centralized infra = single points of failure."

Experts like Dr. Max Li, CEO of OORT, called it a "classic risk," adding, "That's why we need decentralized cloud solutions like Filecoin or Akash Network."

As we prepare for this year's Point Zero Forum 2025, alongside an esteemed group of fintech leaders, I see this as a critical topic for our May 5-7 gathering in Zurich.

Regulators, central bankers, and innovators will be converging to discuss the pressing issues of blockchain, artificial intelligence, and digital money—issues that are closely tied to the need for a more resilient financial infrastructure.

This outage is a stark reminder: to disrupt capital markets, fintech must fully embrace the decentralization it preaches. The crypto community responded quickly, with Binance and KuCoin back online swiftly.

But the incident's ripples will linger as we collectively strive to build a better, more enduring financial future.

For an industry that is redefining the boundaries of markets and commerce, the path forward demands the creation of robust, distributed systems that can withstand any storm.

The post Major Crypto Exchanges Hit By Outage As AWS Suffers Power Failure appeared first on Point Zero.