AG Bonta Reaches $500,000 Settlement With Fidelity Digital Assets Over Crypto Withdrawal Restrictions
SACRAMENTO — California Attorney General Rob Bonta announced on Oct. 16 a $500,000 settlement with Fidelity Digital Asset Services (FDAS), the cryptocurrency subsidiary of Fidelity Investments, resolving allegations that the company's past restrictions on the ability to withdraw certain cryptocurrencies violated the California Commodity Law's (CCL) commodity contract ban.
"While the cryptocurrency market may be ever-changing and shifting, California law is not. Investors have a legal right to full, unrestricted access to what they buy," Bonta said. By restricting cryptocurrency withdrawals, he said, FDAS left California investors in limbo, creating an unlawful barrier that violated the state's commodity regulations, and his office will continue to hold cryptocurrency platforms to the same standards of transparency, safety and accountability as any other financial institution.
The attorney general's office said the investigation was launched following the California Department of Justice's September 2024 settlement with Robinhood Crypto, which similarly addressed a failure to allow investors to withdraw digital assets; during that inquiry, the department learned that FDAS had maintained a similar restriction during its first two years of operation. Under California law, "commodity contracts" entered into primarily for speculation or investment purposes are prohibited unless the dealer physically delivers the commodity to the buyer within 28 days of payment; for cryptocurrencies that are commodities, they are only "physically delivered" once an investor has the ability to withdraw them from the dealer's platform.
Upon being contacted by the Department of Justice, FDAS confirmed that it did not allow withdrawals, explaining that it was awaiting required permission from the New York Department of Financial Services (NYDFS). NYDFS granted permission in April 2025, at which point FDAS enabled withdrawal capabilities. The company disputes that it violated California law.
Published by GSM · USA (original Chinese edition)
Photo: 图：加州总检察长罗布·邦塔官方肖像。图片来源：加州司法部，Wikimedia Commons，公共领域。Photo: Official portrait of California Attorney General Rob Bonta. Image: California Department of Justice, via Wikimedia Commons, public domain.
