AWS, the incredibly successful infrastructure venture by Amazon (NASDAQ:AMZN) experienced an outage earlier today that impacted thousands of website. AWS confirmed the outage explaining there was an issue with a Domain Name System (DNS) failure that mainly impacted the US East – 1 region. While the services are said to be coming back online, Amazon said that some swervices may be throttled as things catch up. No cause has yet to be metioned.
It has been widely reported that the outage impacted platforms like SnapChat and banks like Lloyds. Coinbase and Robinhood also reported some disruptions.
The failure of an AWS service highlighted the fragility of the internet, raising questions about why AWS was not better prepared for a DNS outage.
We’re aware many users are currently unable to access Coinbase due to an AWS outage.
Our team is working on the issue and we’ll provide updates here. All funds are safe.
— Coinbase Support (@CoinbaseSupport) October 20, 2025
Edvards Margevics, Co-CEO & Partner Payments Company CONCRYT said the AWS outage shows that even the most robust cloud infrastructure can become a single point of failure with immediate consequences. Margevics pointined to the impact on payments processesors as services are disrupted and settlements are interrupted.
“In the payments world, where every second counts and interruptions equate to lost revenue or reputational damage, this incident underscores the importance of having resilience, backup protocols and multi-cloud redundancy baked into infrastructure planning. It also reaffirms why merchants need to diversify critical systems, partner with payment platforms that have international fail-over capacity and continuously test for operational continuity.”
Margevics predicts this event will accerate discussions around risk mitigation and contingincies as firms seek to ensure infrastructure is hardened and can survive downtimes of key providers.
