Following spikes in traffic, Coinbase rushes to restore digital wallets

CEO Brian Armstrong said on Wednesday afternoon that Coinbase apps are "recovering" after some users found out they had nothing in their digital accounts when they first opened.

CEO Brian Armstrong stated on Wednesday afternoon that Coinbase apps are "recovering" following the discovery by some users that when they opened their digital accounts, they had zero balances. The Bitcoin exchange confirmed the problem early on Wednesday, following user reports of empty accounts and trouble conducting deals.

Armstrong continued on X (formerly known as Twitter), saying that maintaining the company's services "over-provisioned," or overloading an app to test its capacity and ensure it can withstand traffic spikes, is "expensive." Earlier in the day, the company had posted about the problem.

The business stated on X that they are aware that certain consumers would see a zero balance on all of their Coinbase accounts and might run into problems when purchasing or selling. The Coinbase team assured customers that they are looking into this and will let users know as soon as possible that their money is secure. A link to Coinbase's website so users could follow the incident's progress was supplied.

Some Coinbase users who trade cryptocurrencies claimed on social media that the issue has made them less confident in the service. A commenter noted that, considering the recent spike in bitcoin prices — which reached a record-breaking $60,000 on Thursday — the blunders were happening at a crucial juncture in the market.