Fidelity Agrees to Pay California Attorney General $500,000

Fidelity Digital Assets, National Association agreed to pay California Attorney General Rob Bonta $500,000 to resolve claims over its predecessor’s limits on California retail customers’ crypto withdrawals.

Bonta announced the agreement Oct. 16. It covers transfer-related conduct from Nov. 1, 2022, through June 20, 2025, and identifies Fidelity Digital Assets, National Association as the successor to Fidelity Digital Asset Services LLC.

During the period at issue, California retail customers could buy and sell crypto through Fidelity’s platform but could not move it directly to an outside wallet until transfer functionality received approval in April 2025. Fidelity made transfers available to all California customers by June 2025.

The dispute centers on California’s commodities law, which generally requires physical delivery within 28 days for certain investment-oriented contracts. California treats a customer’s ability to withdraw crypto from a platform as delivery under that rule. Bonta said investors have “a legal right to full, unrestricted access to what they buy.”

Fidelity must pay the attorney general within 30 days after receiving written payment-processing instructions. The $500,000 is designated for investigation and agreement-related fees and costs, and to resolve potential claims. The agreement does not provide payments to individual customers, and California’s release of covered civil claims takes effect only after full payment.

The agreement states that Fidelity’s California customers can transfer crypto to external wallets, subject to applicable laws and security restrictions. If Fidelity stops offering transfers to those customers, it must provide reasonable written notice. The agreement does not require transfers from tax-advantaged accounts subject to federal transfer rules.

Fidelity denied wrongdoing. The settlement is not an admission of liability and was reached without a court finding on the claims. California reached a separate settlement with Robinhood Crypto in September 2024 over crypto withdrawal access, trading and order-handling disclosures.