On Sunday morning, Coinbase account holders based in the US found that they couldn’t conduct transactions on the platform. Later, the popular crypto exchange made a status update confirming that it has momentarily stopped transactions from US bank accounts. The bug prevents US-based bank accounts from buying cryptocurrencies as well as depositing and withdrawing funds on the platform.
In their statement, Coinbase explained that it’s unable to make withdrawals or take payments from US bank accounts. They further elaborated that the team is aware of the problem and is looking for solutions to address the bug. Hence, they assured that Coinbase users can expect everything to go back to normal soon.
One hour after their first notice, Coinbase made two more statements about investigating the issue. Then, at 8:23 AM ET, they assured users that the transaction-related bug has been identified, and they were looking into a solution. During the downtime, Coinbase traders could still use their PayPal accounts or debit cards to purchase cryptocurrencies.
Bug Caused Due to Problem With ACH Network
Explaining that they are preparing a solution to the issue, Coinbase attributed the bug to issues to ACH withdrawals, buys, and deposit failures. The ACH system is the Automated Clearing House Network used to electronically transfer funds between bank accounts in the US.
Coinbase Downtime Classified as Major Outage
On the Coinbase support page, users could see that the transaction-related problem with US-based bank accounts was classified as a major outage. Despite this, every supported cryptocurrency on the platform was still tradable, with the exception of Solana. The coin experienced terrible performance due to its own outage, which took place on Friday night and lasted for over six hours. Due to this, Coinbase users had to deal with delayed Solana transactions.
Coinbase Assures Users That ‘Funds Are Safe’
While users started to panic, the Coinbase Support page on Twitter stated that account holders’ don’t have to worry and that their funds are secure. They went on to state that they would provide users with further information once the platform resumes functionality. The company finally resolved the issue around 12:40 PM ET and announced that transactions were restored.
Based on reports by CoinGecko, over the last 24 hours, Coinbase experienced a trading volume of about $569 million. Over half of the volume includes Bitcoin and Ethereum, with Solana making up 4 percent at $23 million.
Despite seeing impressive growth last year, 2022 has been a rough year for the cryptocurrency industry. Values of numerous coins have reached all-time lows and various crypto exchanges, such as Coinbase and WazirX, laid off a significant chunk of their workforces. To make things worse, Coinbase is under investigation by the US Securities and Exchange Commission. Altogether, current conditions are shaking investors’ faith in crypto.