Fidelity Digital Assets reached a $500,000 settlement with California Attorney General Rob Bonta on October 16, addressing past restrictions on cryptocurrency withdrawals. The agreement requires the company to notify California retail customers in writing if it ceases offering direct crypto transfers to external wallets.
The settlement covers a period from November 2022 through April 2025 when California customers could buy and sell cryptocurrency on Fidelity's platform but could not transfer assets directly off it. Regulatory approval for transfers came in April 2025, and the feature became available to all California retail customers by June 2025.
Fidelity denies any wrongdoing and did not admit to violating law under the settlement terms. The company stated that the $500,000 payment covers investigation-related fees and costs, with no customer compensation fund established.
Security Restrictions Preserved
The agreement allows Fidelity to continue restricting or blocking transfers when necessary to protect its platform or individual accounts. The company maintains the ability to enforce security measures while providing the notice requirement for any decision to discontinue the transfer feature entirely.
Tax-Advantaged Accounts Excluded
Individual retirement accounts and other tax-advantaged accounts are explicitly excluded from the settlement's transfer obligations. Fidelity plans to launch Crypto IRA accounts in California, though no specific launch date has been announced.
Where Fidelity Crypto IRAs are currently available, the product does not permit direct crypto transfers. Instead, account holders can move funds from their U.S. dollar position to a linked Fidelity brokerage IRA to access withdrawal features. The IRA product remains unavailable in California and Oregon.
