Attorney General Bonta Holds Crypto Platforms Accountable, Secures Settlement with Fidelity over Crypto Withdrawal Restrictions | State of California – Department of Justice

SACRAMENTO — California Attorney General Rob Bonta right this moment introduced a $500,000 settlement with Fidelity Digital Asset Companies (FDAS), the cryptocurrency subsidiary of Fidelity Investments. The settlement resolves allegations that the corporate’s previous restrictions on the flexibility to withdraw sure cryptocurrencies violated the California Commodity Legislation’s (CCL) commodity contract ban.    

“Whereas the cryptocurrency market could also be ever-altering and shifting, California legislation is not. Traders have a authorized proper to full, unrestricted entry to what they purchase,” mentioned Attorney General Bonta. “By proscribing cryptocurrency withdrawals, Fidelity Digital Asset Companies left California buyers in limbo, creating an illegal barrier that violated our state’s commodity rules. We are going to proceed to carry cryptocurrency platforms to the very same requirements of transparency, security, and accountability as another monetary establishment. My workplace stays deeply dedicated to defending California buyers and guaranteeing a good, legally compliant market.”

The investigation into FDAS was launched following the California Department of Justice’s (DOJ) September 2024 settlement with Robinhood Crypto, which equally addressed a failure to permit buyers to withdraw digital belongings. Throughout that inquiry, DOJ discovered that FDAS maintained the same restriction throughout its first two years of operation. Below California legislation, “commodity contracts” entered into primarily for hypothesis or funding are prohibited except the seller bodily delivers the commodity to the client inside 28 days of cost. For cryptocurrencies that are commodities, they’re solely “bodily delivered” as soon as an investor has the flexibility to withdraw them from a seller’s platform. 

Upon being contacted by DOJ, FDAS confirmed it didn’t permit withdrawals, explaining that it was awaiting required permission from the New York Department of Monetary Companies (NYDFS). NYDFS granted permission in April 2025, at which level FDAS enabled withdrawal capabilities. The corporate disputes it violated California legislation. 

The Company Fraud Part of the California Department of Justice investigates and prosecutes complicated monetary wrongdoing to guard buyers, state packages, and most people. Working below the statutory authority of California’s Unfair Competitors Legislation, False Claims Act, and Company Securities and Commodities Legal guidelines, the part targets main financial misconduct, together with securities and commodities fraud, and cryptocurrency compliance.