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Amazon’s Cloud Service Caused Major Disruptions At Some Crypto Exchanges

Amazon’s Cloud Service Caused Major Disruptions At Some Crypto Exchanges

crypto exchanges
Amazon Web Service problems affected a number of Asian crypto exchanges on Aug. 23, 2019, including Binance, BitMax and KuCoin.

Failure of Amazon’s cloud service caused major disruptions at a dozen cryptocurrency exchanges, lasting days for some and resulting in some users losing money.

The Amazon Web Service (AWS) disruptions that began on Aug. 23 saw the Bitcoin exchange rate fall to $1 on the BitMax exchange, although it was possible to restore the normal cost an hour after the incident once operations were paused.

Many users were confused and did not understand why the AWS crash caused a decline in the crypto rates, according to Coindesk.

Asian crypto exchanges affected

Dovey Wan, a co-founder of Primitive Ventures, said the problem with AWS affected a number of Asian exchanges. This is why prices for crypto assets were extremely unstable and on some sites, people could buy bitcoin at a very low price.

Wan added that some of the traders who managed to get such incredibly cheap bitcoin “already successfully withdrew” before exchange operations were paused, and those platforms will struggle to claim those funds.

Other exchanges affected included the Binance exchange that was disrupted internationally, according to a tweet from CEO Changpeng “CZ” Zhao.

“Due to the overheating of part of our chassis in the machine room we deployed in AWS, Tokyo, part of our services might become unavailable,” the KuCoin crypto exchange said in a community announcement.

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The disruption also caused problems with the withdrawal of money and the display of trading data, according to Let Know News.

“The most effective solution for platform users, of course, will be to file a class-action lawsuit against the platforms,” Christina Nemchinova, a co-founder of Brightman legal fintech consulting, told Let Know News.

A week after the incident, markets remained relatively calm with normal volumes reported.