AWS Outage Causes Major Disruptions for Leading Platforms Like Coinbase and Robinhood

A substantial outage at Amazon Web Services (AWS), the global leader in cloud computing, triggered sweeping service disruptions across multiple industries. High-profile platforms such as cryptocurrency exchange Coinbase and trading app Robinhood were among those impacted.

On October 20, AWS experienced network issues in its critical US-EAST-1 region, which serves much of the eastern United States. Starting at around 5 a.m. ET, the cloud provider reported elevated error rates and service delays, leading to widespread complaints from users unable to access affected platforms.

Impact Across Industries: From Crypto Trading to Gaming

The AWS outage rippled across several sectors, affecting key services beyond Coinbase and Robinhood. Artificial intelligence search platform Perplexity, popular gaming platforms Fortnite and Roblox, communication tool Slack, and other services reliant on AWS infrastructure experienced disruptions. AWS’s position as a backbone of cloud computing—with a dominant 30% global market share—meant the outage’s effects were felt far and wide.

Amazon reported the issue as originating within its DynamoDB service, a major cloud-based NoSQL database. Severe interruptions in DynamoDB’s API requests were noted, with additional challenges affecting global functions tied to the US-EAST-1 region. These included critical systems like Identity and Access Management (IAM), global tables, and support case creation mechanisms. AWS confirmed elevated error rates first detected at 12:11 a.m. Pacific Time.

Unveiling the Root Cause and Recovery Efforts

By 2:01 a.m. PT, AWS identified a probable Domain Name System (DNS) resolution problem affecting DynamoDB endpoints as the root cause of the outage. Efforts to resolve the issue were initiated immediately, with AWS pursuing multiple recovery strategies to accelerate normalization. Partial recovery signs began to emerge at 2:22 a.m. PT, though AWS warned customers of lingering disruptions.

Despite progress, AWS cautioned users to retry failed operations while acknowledging that a backlog created during the outage could delay full service restoration. The company committed to providing continual updates throughout the recovery process to ensure transparency.

Responses from Companies Impacted

Coinbase, one of the most prominent cryptocurrency exchanges, was quick to address the outage via X (formerly Twitter), informing users of temporary inaccessibility due to AWS infrastructure failures. Coinbase reassured customers that the security of funds was not compromised, stating:

"We're aware many users are currently unable to access Coinbase due to an AWS outage. Our team is working on the issue and we'll provide updates here. All funds are safe."
— Coinbase Support (@CoinbaseSupport) October 20, 2025

The company clarified that the service interruptions stemmed directly from AWS rather than Coinbase’s own systems. AWS powers vital cloud services for numerous major companies, including Netflix, Disney+, Airbnb, and Coinbase, exemplifying its integral role in maintaining operational continuity across industries.

Coinbase also noted instability within AWS data centers in North America, which contributed to network connectivity issues for multiple web services. The firm pledged ongoing communication with users and a swift resolution of the outage's effects.

Cryptocurrency Market Turbulence During Downtime

The timing of the AWS outage coincided with increased volatility in cryptocurrency markets. Bitcoin’s price hovered around $110,000, while Ethereum traded near $4,000. Some traders faced obstacles completing transactions during service interruptions as Coinbase handles approximately 6% of total global spot crypto trading volume. This temporary disruption spurred concerns about heightened market volatility.

For traders and investors, the incident highlights the risks of centralizing critical services within a single cloud provider, such as AWS. The outage underscored the vulnerabilities of businesses that depend heavily on centralized infrastructure for daily operations.

Lessons from the AWS Outage: Broader Implications for Tech

The cascading effects of the AWS outage serve as a stark reminder of the substantial dependencies industries have on cloud computing giants. As businesses increasingly rely on cloud infrastructure to power their services, disruptions like this highlight the need for robust contingencies and diversified infrastructure strategies.

With AWS leading global cloud computing and supporting diverse industries, including entertainment, finance, gaming, and communications, the substantial reach of service failures cannot be underestimated. The broader tech ecosystem is left grappling with questions about resilience, redundancy, and the far-reaching ripple effects of centralized infrastructure outages.

As AWS works to fully resolve the issue, businesses, traders, and developers eagerly await service restoration, while the incident prompts reflections on the critical role cloud providers play in the modern digital economy.