Fidelity Pays $500,000 In California Crypto Withdrawal Settlement
Summary
California secured a $500,000 settlement with Fidelity Digital Asset Services over past restrictions that prevented some customers from withdrawing purchased crypto to external wallets. The state argued the restrictions violated commodity rules requiring physical delivery, which California interprets as allowing buyers to transfer assets away from the dealer. Fidelity disputes that it broke state law and said it awaited New York regulatory approval; external withdrawals were enabled after approval in April 2025. The case, announced by Attorney General Rob Bonta on October 16, follows California’s scrutiny of Robinhood Crypto and reflects broader questions about customer control over crypto held through financial platforms.
