Fidelity Pays $500K to California Over Crypto Withdrawal Limits
California AG Rob Bonta announced a $500,000 settlement with Fidelity Digital Asset Services over past limits on moving purchased crypto into self-custody.
California has reached a $500,000 settlement with Fidelity Digital Asset Services over restrictions that at one point kept some crypto customers from transferring coins they had bought to wallets they control themselves. Attorney General Rob Bonta announced the agreement on October 16.
The state's case centered on historical withdrawal limits, which meant that buying crypto through a platform did not always come with the ability to move it off that platform. Fidelity disputes that its conduct breached state law, and transfers were enabled following a regulatory approval in 2025.
Key points
- Settlement amount: $500,000
- Announced by California Attorney General Rob Bonta on October 16
- The state challenged past restrictions on withdrawing purchased crypto
- Fidelity denies that its conduct violated state law
- Withdrawals were enabled after a 2025 regulatory approval
The agreement touches on a persistent question for crypto users: whether buying an asset through a custodial app carries an implicit right to withdraw it. Firms typically point to licensing and compliance approvals as the gate for enabling transfers, while regulators have shown growing interest in how withdrawal policies are disclosed and applied.