California Attorney General Rob Bonta announced a $500,000 settlement with Fidelity Digital Asset Services (FDAS), the cryptocurrency subsidiary of Fidelity Investments, over restrictions on cryptocurrency withdrawals that allegedly violated California's commodity law.
California law requires commodity dealers to grant investors full, unrestricted access to assets they purchase. For cryptocurrencies, this requirement means investors must be able to withdraw their digital assets from the platform.
FDAS maintained withdrawal restrictions during its first two years of operation while awaiting approval from the New York Department of Financial Services (NYDFS). When contacted by the state Department of Justice, the company confirmed it did not allow withdrawals, explaining it was waiting for NYDFS permission. NYDFS granted that approval in April 2025, at which point FDAS enabled withdrawals. The company disputes that it violated California law.
The settlement follows a similar September 2024 case against Robinhood Crypto, which also restricted cryptocurrency withdrawals. "By restricting cryptocurrency withdrawals, Fidelity Digital Asset Services left California investors in limbo, creating an unlawful barrier that violated our state's commodity regulations," Attorney General Bonta said. "We will continue to hold cryptocurrency platforms to the exact same standards of transparency, safety, and accountability as any other financial institution."