Fidelity Pays $500K Over Crypto It Wouldn’t Let Users Move

Attorney General Rob Bonta announced the settlement on October 16, saying Californians could buy and sell bitcoin on Fidelity from late 2022 to 2025 but couldn’t move it out. Getting it into a personal wallet meant selling, paying any tax, and buying again elsewhere.

“Investors have a legal right to full, unrestricted access to what they buy,” Bonta said. Fidelity enabled withdrawals in 2025, and none of the $500,000 goes to customers.

Why California says crypto you can’t withdraw wasn’t delivered

California’s Commodity Law bans commodity contracts made mainly for speculation or investment unless the dealer physically delivers the commodity within 28 days of payment. The state’s position is that cryptocurrency counts as delivere...