Fidelity Pays $500,000 In California Crypto Withdrawal Settlement

California has secured a $500,000 settlement with Fidelity Digital Asset Services over restrictions that previously prevented some crypto customers from moving purchased coins to their own wallets. TL;DR: Attorney General Rob Bonta announced the settlement on October 16. California challenged historical withdrawal restrictions; Fidelity disputes that its conduct breached state law, and transfers were enabled after a 2025 regulatory approval. The issue is a straightforward one for anyone accustomed to self-custody: buying crypto through an app is not necessarily the same as being able to withdraw it. California’s commodity rules require certain transactions to involve physical delivery within a defined period. The state’s position is that delivery of cryptocurrency requires the buyer to be able to transfer the asset away from the dealer.

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