Binance and KuCoin, two major cryptocurrency exchanges, experienced a significant outage on April 15, 2025, due to an Amazon Web Services (AWS) data center failure, disrupting trading activities and prompting Binance to suspend withdrawals to protect user funds.
This incident echoes past AWS-related disruptions, such as the 2021 outage that affected Binance, KuCoin, and other exchanges, highlighting the crypto industry’s reliance on centralized cloud infrastructure and its vulnerability to single points of failure (Crypto Briefing, 2021).
The outage underscores the need for decentralized infrastructure in crypto; a 2023 study found that 78% of crypto exchanges rely on AWS, raising concerns about systemic risks in the event of large-scale cloud failures (Journal of Blockchain Research, 2023).
