On November 2, 2023, leading crypto exchanges Kraken and Gate experienced unexpected withdrawal downtimes, leaving users temporarily unable to access their crypto assets.
Kraken, a globally recognized crypto exchange, underwent a 40-minute withdrawal freeze. The company swiftly reported that a fix had been implemented, restoring normal service.
Kraken and Gate Exchanges Pause Crypto Withdrawals
This interruption nearly coincided with scheduled maintenance on Kraken at 08:00 UTC, although it remains unclear if the two incidents are related.
Kraken Crypto Exchange Crypto Withdrawals Deposits Delayed. Source: Kraken
Simultaneously, Gate, another prominent crypto exchange, suffered a more prolonged withdrawal downtime. For a staggering six-hour period, many users found their crypto withdrawals paused due to an unspecified technical problem.
Screenshot of Gate crypto exchange outflows from the start of the withdrawal issue period. Source: Arkham Intelligence
These incidents underscore the inherent risk of storing crypto assets on exchanges. While exchanges like Kraken and Gate offer convenience and access to a wide range of cryptocurrencies, they also present potential vulnerabilities.
Users must consider these risks when deciding where to store their crypto assets.
Read more: Hot Wallets vs. Cold Wallets: What’s the Difference?
Kraken Trying to Get Foothold in Europe
Kraken, in particular, has been making significant strides in expanding its global footprint. The company recently appointed Bivu Das as the new managing director for its UK operations. This strategic decision reflects Kraken’s commitment to assert its presence in the UK, one of its most significant markets.
Das said,
“Kraken has long advocated for the potential crypto assets have to transform how everyday people interact with financial services.”
The appointment of Das, a seasoned veteran in the crypto industry, is expected to strengthen Kraken’s position in the competitive crypto market.
These withdrawal downtime incidents at Kraken and Gate are a reminder of the importance of secure crypto storage. As the crypto market continues to evolve, users must stay vigilant, ensuring the safety of their assets while enjoying the benefits of these dynamic platforms.
While crypto exchanges like Kraken and Gate offer a gateway into crypto, they are not without their challenges. Users must remain informed and proactive, securing their assets and navigating the crypto markets with caution and insight.
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