The disruption came during a turbulent stretch for Coinbase after the company reported weaker-than-expected quarterly results and announced plans to cut roughly 14% of its workforce as it pushes to become “lean, fast, and AI-native.”

This Is ‘Never Acceptable’

For hours, traders across crypto markets speculated about the cause of the outage as users reported problems accessing accounts, executing trades and moving funds.

Armstrong addressed the incident in a post on X on Friday.

“We experienced an outage at Coinbase last night, which is never acceptable,” he wrote.

According to Armstrong, the disruption began after multiple chillers failed inside an AWS facility, causing a room to…

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