On Tuesday, April 15, 2025, Binance and KuCoin, two major cryptocurrency exchanges, faced temporary service disruptions due to an Amazon Web Services (AWS) outage. The incident led to transaction failures and withdrawal suspensions on Binance, while KuCoin reported service disruptions as well. Both exchanges have since restored their services.
Binance attributed the service failures to a "temporary network interruption in the AWS data center." Withdrawals were suspended for approximately 15 minutes before systems gradually recovered and reopened. KuCoin also cited the AWS outage for "temporary disruptions" and assured users that assets remained secure.
Decentralization Debate
The incident has renewed discussions about the need for decentralized crypto infrastructure. Critics argue that relying on centralized providers like AWS creates a single point of failure, contradicting the decentralized ethos of the cryptocurrency industry. Decentralized Physical Infrastructure Networks (DePINs) are emerging as a solution, aiming to shift control and ownership of infrastructure from centralized entities to decentralized communities, incentivizing community members to contribute resources in exchange for crypto rewards.