A problem with Amazon Web Services caused, “some 500 error messages on APIs and affecting some withdrawal processing,” at Binance, the exchange’s CEO claimed on Twitter Friday.
AWS is having an issue, mostly with caching services, affecting some users globally. We are working with them and monitoring the situation closely.
— CZ Binance (@cz_binance) August 23, 2019
Amazon Web Services (AWS) is a cloud-computing platform and subsidiary of Amazon. Individuals, companies and governments use the service.
Crypto investor Dovey Wan used the news of AWS-related outages at crypto exchanges to suggest that observers should be more concerned about issues with “Bezos chain” than with the reported dominance of Chinese crypto mining firms over processing of the Bitcoin network.
She also tweeted apparent evidence that Hong Kong-based crypto trading platform Kucoin had been affected by the outage as well.
Kucoin is affected as well pic.twitter.com/Ke7MRzwa8g
— Dovey Wan 🗝 🦖 (@DoveyWan) August 23, 2019
Wan followed this with another tweet stating, “Many Asian exchanges see price instability (and trades were able to execute, yes you can buy extremely cheap Bitcoin if you had limit orders there).”
She also reportedly tweeted a screenshot of data from an exchange indicating that someone bought 45 bitcoins for less than $1 USD worth of tether:
Another screenshot obtained by Coindesk from the CITEX exchange appears to show traders snapping up bitcoins for as low as $0.32 there (note the long green candle):
Another screenshot from the AWS status page shows the company acknowledging a problem with its Tokyo based server.
AWS has yet to provide additional comment on the outage.
If the news is true, it may suggest that hackers have figured out a new way to steal from crypto exchanges.