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.

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