Coinbase Glitche Causes User Balances to Vanish: Are Your Funds Safe?

Coinbase users saw zero balances and couldn't buy or sell crypto.
Bitcoin price went up to $64,000 then dropped 4% in minutes. This happened while Coinbase was having technical issues.
The website is working again, logins are restored, and transactions are getting back to normal.

This isn’t something you would have seen coming!

In an unexpected twist, Coinbase, a leading cryptocurrency exchange, grappled with technical issues on Wednesday, leaving users bewildered as their accounts displayed a disconcerting zero balance. This disruption coincided with a sharp decline in Bitcoin’s value, which had just surged to over $64,000, marking its highest point since November 2021.

A Shock for Users

Users were taken aback to find their account balances reduced to zero, coupled with errors disrupting buying or selling transactions. Coinbase swiftly addressed the situation.

“We are aware that some users may see a zero balance across their Coinbase accounts and may experience errors in buying or selling.”

Despite a lack of clarity on when the exchange site would return to normal, Coinbase reassured users about the safety of their assets and encouraged them to monitor the status page for real-time updates. Screenshots shared by users showcased balances at $0.00, accompanied by notices of “Site Degraded Performance,” indicating ongoing investigations.

Coinbase Provides Clarity

Coinbase took to social media to communicate updates on the unfolding situation. In a post, they mentioned, “We’re beginning to see improvements in customer trading,” acknowledging that increased traffic might lead to errors in various functionalities.

Also Read: Ripple and Coinbase Get a Boost? Top SEC Lawyer Switches Sides, Joins White & Case

Bitcoin’s Rollercoaster: Peaks, Plummets, and Market Forces

Coinciding with Coinbase’s technical challenges, Bitcoin, the reigning cryptocurrency, embarked on a rollercoaster journey on February 28. After achieving an impressive peak above $64,000, Bitcoin’s value swiftly plummeted by about $2,800, constituting a significant 4% drop within minutes.

The ascent of Bitcoin to over $64,000 marked a milestone-driven by market optimism, heightened trading activity, and key macroeconomic shifts. The approval of new U.S. spot Bitcoin ETFs and the impending Bitcoin halving, coupled with an anticipated correction post-halving, played pivotal roles in attracting capital to the market.

Recovery Mode Activated!

As of now, Coinbase.com is up and running. The positive news is that customer login functionality has been restored, and transactions are gradually returning to normal. Should users encounter any persistent issues, they can take solace in the active efforts of the Coinbase team to resolve them.