# 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.
- Title: Fidelity Pays $500,000 to California for Crypto Withdrawal…
- Summary: Fidelity settles $500,000 with California over crypto transfer restrictions, must warn customers before ending external wallet transfers. Fidelity Digital…
- Keywords: fidelity, california, crypto, withdrawal, fidelity digital assets, attorney general, fidelity crypto, crypto ira, finance, markets, Pays, 500
- Source: BigGo Finance — https://finance.biggo.com/news/845846e1-8b35-4fad-9235-5c7bc8032770
- Author: BigGo Finance
- Published: 2026-10-19T18:20:41+00:00
- Read time: 1 min
- Topics: fidelity, california, crypto, withdrawal, fidelity digital assets, attorney general, fidelity crypto, crypto ira, finance, markets
## 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.
## Key takeaway

Fidelity Digital Assets paid California $500,000 to settle crypto withdrawal restrictions and must give written notice before ending external wallet transfers for customers.