From BigGo Finance · BigGo Finance · · 1m 20s
Fidelity Pays $500,000 to California for Crypto Withdrawal Case
Fidelity settles $500,000 with California over crypto transfer restrictions, must warn customers before ending external wallet transfers.
In brief
Fidelity settles $500,000 with California over crypto transfer restrictions, must warn customers before ending external wallet transfers. Fidelity Digital Assets paid California $500,000 to settle crypto withdrawal restrictions and must give written notice before ending external wallet transfers for customers…
Settlement Payment
Fidelity Digital Assets agreed to pay California $500,000 to settle an investigation into limits that blocked retail customers from sending crypto to outside wallets between November 2022 and April 2025.
Notice Requirement
The settlement requires Fidelity to give California customers reasonable written notice before discontinuing external-wallet transfers, though it may still restrict or block transfers for platform or account protection.
No Customer Compensation
No customer compensation fund was created, and Fidelity denied wrongdoing in the settlement.
Crypto IRA Exclusion
Crypto IRAs are excluded from the terms; the product remains unavailable in California and Oregon.
Settlement Timeline
The agreement covers a stretch running from November 2022 through April 2025, when California retail customers could buy and sell crypto but could not send it directly to wallets outside the platform.
Regulatory Approval
Fidelity obtained regulatory clearance in April 2025, and the transfer function was available to all California customers by June 2025.
The key point
Fidelity Digital Assets paid California $500,000 to settle crypto withdrawal restrictions and must give written notice before ending external wallet transfers for customers.
