- AWS outage disrupted Binance and KuCoin, causing significant service interruptions.
- The incident revealed the crypto industry’s heavy reliance on centralized cloud services.
- Calls for decentralized infrastructure grew after the outage exposed systemic risks.
The April 15, 2025, outage of Amazon Web Services (AWS) caused major disruptions for leading cryptocurrency exchanges Binance, KuCoin, and others. The incident highlighted the industry’s dependence on centralized cloud infrastructure and sparked widespread discussions about shifting toward decentralized solutions to mitigate systemic risks.
Major Service Disruptions
At approximately 1:15 a.m. PDT (08:15 GMT), AWS reported a “connectivity issue” at its Tokyo cloud region. The issue was resolved by 1:51 a.m. PDT (08:51 GMT). During this period, Binance experienced temporary service disruptions, including a 23-minute withdrawal pause. In an X post, Binance reassured users, stating, “We are aware of an issue impacting some services on the Binance platform due to a temporary network interruption in the AWS data center.”
KuCoin also suffered disruptions, telling users, “Our technical team is urgently working on a fix, and the recovery time will be announced separately. Rest assured that your assets remain secure and all data is intact.” The issues were caused by the same AWS outage, which affected services across its Tokyo data center.
Impact on Other Platforms
Besides Binance and KuCoin, other cryptocurrency platforms, including MEXC, Coinstore, Gate.io, DeBank, Rabby Wallet, and Weex, reported similar disruptions. MEXC users faced issues such as abnormal candlestick charts, failed order cancellations, and delays in asset transfers. The exchange offered compensation for any losses incurred during the disruption, emphasizing that user funds remained secure.
The AWS outage affected more than eight platforms, underlining the vulnerability of centralized systems in the crypto industry. With many crypto exchanges relying heavily on centralized cloud services like AWS, disruptions such as these expose the entire sector to systemic risks.
The Growing Push for Decentralized Infrastructure
Dr. Max Li, founder and CEO of OORT, a company offering decentralized cloud services for Artificial Intelligence (AI), highlighted the dangers of centralized infrastructure. “This outage is a classic example of the risk associated with a single point of failure in centralized cloud infrastructure,” he said. Li further explained that while decentralized cloud computing faces its own challenges—such as network coordination, latency, and scalability—it provides a compelling alternative by distributing data and processing across multiple nodes. This approach effectively reduces the risk of total service disruptions.
The AWS incident has amplified calls for decentralized cloud solutions in the cryptocurrency sector. Several decentralized platforms, such as Filecoin and Akash Network, offer alternatives to centralized providers, aiming to distribute workloads and data storage to avoid relying on a single cloud provider.
Related: Binance Launches KernelDAO to Boost Staking and Liquidity
Broader Industry Implications
This outage serves as a stark reminder of how critical centralized cloud services are to the daily operations of cryptocurrency platforms. However, it also highlights the need for more resilient, decentralized alternatives that can reduce the industry’s exposure to such risks. As more exchanges and platforms seek to avoid future disruptions, the momentum for decentralized infrastructure is expected to grow.
