Coinbase users report difficulties in withdrawing funds, heightening fears amid a widespread collapse in cryptocurrency prices.
The company confirmed the problems in the tweet in Thursday. “We are aware that some customers have problems with trading and access to Coinbase and Coinbase Pro accounts,” the company said. “Your funds are safe and we are actively working on the issue. We will provide an update here soon. ”
Shortly afterwards, the company said the situation could be resolved: “We are seeing a recovery after the implementation of the correction, but our teams continue to monitor the situation.
We see recovery after the correction, but our teams continue to monitor the situation. Rest assured that we have all our hands on deck and will continue to work to ensure that our services are sound. https://t.co/N1t0FqMA5z
– Coinbase support (@CoinbaseSupport) May 12, 2022
In Reddit communities, users report continuous delays in withdrawals, leaving thousands of dollars hanging by a thread. More recently, another user reported that they did not have access to the app or website at all.
Did the bear market crash their servers? reads the publication. “Pretty scary if someone wants to trade fast.”
The break comes amid a widespread collapse in cryptocurrency prices, which adds particular urgency to transactions and withdrawals. Bitcoin fell below $ 30,000, losing more than 25 percent of its value in a month. As with any financial meltdown, falling prices have forced many coin holders to sell their assets and tested the core financial infrastructure of many institutions.
As a leading cryptocurrency and wallet exchange service, Coinbase has been particularly hard hit by the crash. The company reported a sharp decline in revenue earlier this week, and its shares fell more than half their value in a week. Consumers were particularly shaken through financial documentation that the alleged holders of Coinbase accounts may be considered unsecured creditors in insolvency proceedings, which seems to suggest that they may lose money from their accounts if the company becomes insolvent. Coinbase CEO Brian Armstrong disputes the claimssaying that consumers’ funds are not in danger.
Coinbase did not respond immediately to a request for comment.