With heavy FUD surrounding the cryptocurrency market, cryptocurrency trading exchange Coinbase has been seeing a sudden influx of users attempting to withdraw funds from the platform.
Coinbase users and Coinbase themselves have reported a high number of site outages and problems preventing users from withdrawing money from the currency exchange.
Coinbase Publically Addresses the Problem
The company confirmed in a tweet on Thursday, “We are aware that some customers are having issues trading and accessing accounts on Coinbase and Coinbase Pro.” The company continues, “Your funds are safe, and we are actively working on the issue. We’ll provide an update here soon.”
The company later gave an update that the problems are seeing resolution after their team implemented fixes and iterated that their teams are “continuing to monitor the situation.”
Outages Follow a Trend from the Exchange
Site failures and the issue of users not being able to withdraw money or conduct trades have become a recurring issue for Coinbase in the last year.
The outage comes amid a widespread crash in crypto prices, contributing more urgency to trading and withdrawals. The cryptocurrency market has seen a sum loss of more than $300 billion in recent months as of May 2022.
Trouble for Coinbase
The cryptocurrency exchange itself is also struggling along with current market conditions, with Coinbase reporting a drastic drop in revenue early this week. Coinbase stock has also fallen to less than half of its value in the course of a week. Concerns were especially raised when a financial filing was released that suggested that Coinbase account holders might be viewed as unsecured creditors in bankruptcy proceedings. This might suggest that users might lose money from their accounts if Coinbase starts to default. Brian Armstrong, CEO of Coinbase challenged the claims saying their user funds were not in jeopardy.