Attorney General Bonta Holds Crypto Platforms Accountable, Secures Settlement with Fidelity over Crypto Withdrawal Restrictions

SACRAMENTO - California Attorney General Rob Bonta today announced a $500,000 settlement with Fidelity Digital Asset Services (FDAS), the cryptocurrency subsidiary of Fidelity Investments. The agreement resolves 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," said Attorney General Bonta. "By restricting cryptocurrency withdrawals, Fidelity Digital Asset Services left California investors in limbo, creating an unlawful barrier that violated our state's commodity regulations. We will continue to hold cryptocurrency platforms to the exact same standards of transparency, safety, and accountability as any other financial institution. My office remains deeply committed to protecting California investors and ensuring a fair, legally compliant marketplace."

The investigation into FDAS was launched following the California Department of Justice's (DOJ) September 2024 settlement with Robinhood Crypto, which similarly addressed a failure to allow investors to withdraw digital assets. During that inquiry, DOJ learned that FDAS maintained a similar restriction during its first two years of operation. Under California law, "commodity contracts" entered into primarily for speculation or investment 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 a dealer's platform.

Upon being contacted by DOJ, FDAS confirmed 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 it violated California law.

The Corporate Fraud Section of the California Department of Justice investigates and prosecutes complex financial wrongdoing to protect investors, state programs, and the general public. Operating under the statutory authority of California's Unfair Competition Law, False Claims Act, and Corporate Securities and Commodities Laws, the section targets major economic misconduct, including securities and commodities fraud, and cryptocurrency compliance.