Uphold Closes Crypto Withdrawal Incident After Six Days of Delays
Uphold closed its crypto transfer incident on Nov. 10, six days after delays began. It blamed an unnamed transaction-monitoring partner. Fiat kept running, but users reported waits of up to four days and bank-run claims spread online.
Six days after crypto transfers started stalling on Nov. 4, Uphold has called the problem fixed. Its status page closed the incident at 3:50 a.m. ET Tuesday, Nov. 10, and listed all systems as operational.
Fiat deposits, withdrawals and trading kept running normally throughout, Uphold said in a post on X.
What Uphold blamed
Uphold cited a "service disruption at our third-party transaction monitoring partner" and declined to name the provider. It said the issue also hit "Topper and other companies across the industry."
By Nov. 5, about 80% of crypto deposits and withdrawals were processing. On Nov. 6 a workaround let deposits resume for most assets. Still delayed, per the status page: CSPR, CCD, KAS, STX, STRK, IOTA and SHX, plus BTC over Lightning and USDC on XRPL.
On Nov. 9, Uphold acknowledged transfers were still delayed and more transactions needed review.
"We are currently actively working through the backlog. Your funds remain safe."
Uphold
The final push
Chief Product Officer Paul Unterberg said on the morning of Nov. 10, New York time, that staff had worked through reviews overnight and were changing how systems flagged transactions.
"The majority of transactions are cleared and I don't anticipate the massive delays anymore."
Paul Unterberg, Uphold CPO
Not everyone is convinced
Customers complained on outage tracker StatusGator as recently as Nov. 9. Reported delays ran from a few hours to four days. Claims of a "bank run" circulated on social media.
Third-party monitors show Uphold withdrawals as normal. Uphold has not said whether all withdrawals are processing normally.
One timing overlap: Chainalysis announced an address-screening shutdown around 10:30 a.m. New York time on Nov. 4. The timing alone is not proof Chainalysis is the provider involved.
Context
The outage lands on a company under pressure. Uphold cut 17% of its global workforce in July, and it paused deposits for European customers on July 1 during its MiCAR licensing process. At the end of October it said it is leaving Brazil, with a Nov. 30 withdrawal deadline.
In April, the New York Attorney General secured more than $5 million from Uphold over misleading investors about CredEarn. Uphold disputed the characterization as "profoundly inaccurate."
