The outage started in Northern Virginia<\/strong>. An Amazon Web Services (AWS)<\/strong> data center experienced extreme overheating. This thermal issue caused a loss of hardware power. The servers hosting the Coinbase<\/a><\/strong> infrastructure were directly affected. The result: users were completely locked out for several hours. It was impossible to manage their portfolios or place an order. For those who understand cryptocurrencies, this incident illustrates a major structural vulnerability in the sector.<\/p>\n\n\n\n AWS quickly rerouted traffic to limit the damage. However, the hardware damage significantly slowed down the recovery of services. Every second counts in a crypto market. Missing a breakout or being unable to close a position is costly. Traders learned this the hard way.<\/p>\n\n\n\n This event serves as a reminder of an often ignored reality. Web3<\/strong> giants rely heavily on centralized<\/strong> infrastructures. AWS hosts a large part of the global crypto ecosystem. A regional outage can paralyze platforms managing billions of dollars. This is an underestimated systemic risk.<\/p>\n\n\n\n