Coinbase users are reporting difficulties withdrawing funds, adding to fears of a widespread cryptocurrency price crash.
The company confirmed the problems in a tweet on Thursday. “We are aware that some customers are experiencing issues trading and accessing accounts on Coinbase and Coinbase Pro,” the company said. “Your funds are safe and we are actively working on the issue. We will provide an update here soon.”
Shortly thereafter, the company indicated that the situation might resolve: “We are seeing a recovery following the implementation of a fix, but our teams are continuing to monitor the situation.”
We’re seeing a recovery after implementing a fix, but our teams continue to monitor the situation. Rest assured we have all hands on deck and will continue our work to ensure our services are healthy. https://t.co/N1t0FqMA5z
— Coinbase Support (@CoinbaseSupport) May 12, 2022
In communities on Reddit, users have reported persistent delays in withdrawals, leaving thousands of dollars in the balance. Recently, another user reported that they couldn’t access the app or website at all.
“Did the bear market crash its servers?” the post reads. “Pretty scary if someone wants to make a quick trade.”
The downtime comes amid a widespread crash in cryptocurrency prices, making trades and withdrawals particularly urgent. Bitcoin has fallen below $30,000 and lost more than 25 percent of its value over the course of a month. As with any financial crash, the drop in price has prompted many coin holders to sell their assets and has tested the underlying financial infrastructure of many institutions.
As a leading cryptocurrency exchange and wallet service, Coinbase was particularly hard hit by the crash. The company reported a sharp drop in sales earlier this week, and its stock has lost more than half of its value over the course of a week. Users were particularly shaken by a financial report that suggested Coinbase account holders could be seen as unsecured creditors in bankruptcy proceedings, suggesting they could lose money from their accounts if the company defaults. Coinbase CEO Brian Armstrong denied the claimsand said that user funds are not at risk.
Coinbase did not immediately respond to a request for comment.