Abu Dhabi regulators will fine crypto companies and their CEOs over $12 million through unlicensed activities

Abu Dhabi’s financial regulator has fined more than $12 million on crypto company Hayvn and its CEO for AML violations and unlicensed activities.

The Financial Services Regulatory Authority at Abu Dhabi Global Market has taken enforcement action against Hayvn Group and its former CEO, Christopher Flinos, against regulations violations and unauthorized cryptographic activity. In a press release on Monday, April 14, the FSRA said it had fined a total of $8.85 million and cancelled Hayvn’s financial services license.

Additionally, the ADGM registry also levied another $3.6 million fine, of which $3.3 million was imposed on Flinos for “engaging in various fraudulent schemes.”

Other fines include $3.6 million for Hayvn Cayman, $3 million for Hayvn ADGM, $1.5 million for AC Holdings and $750,000 for Flinos itself, adding that the FSRA has banned Flinos from holding financial services roles at ADGM.

According to financial regulators, HayVN ADGM has allowed client transactions to pass through accounts held by AC Holding, an unlicensed entity. The regulator says the company “failed to establish and maintain appropriate systems and management to manage operations and risk,” and recorded all of its client relationships, thereby violating AML requirements.

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The FSRA also found that Hayvn Cayman and AC Holding Holding “Routing client transactions related to the conversion of Virtual Assets to Fiat Currency through accounts held and controlled by AC Holding.” The investigation also found that Hayvn Cayman, AC Holding, and Flinos “created and disseminated false and misleading information”, including “containing more than 200 false and misleading documents.”

According to Hayvn’s website, the platform allows users to exchange cryptocurrencies through commercial services and accept cryptocurrency payments both online and in person. In November 2022, Hayvn’s board of directors approved a plan to bid for FTX Pay, FTX Pay, through the public process. Flinos said at the time that FTX Pay was a valuable asset “due to its relationships with large companies such as MasterCard.” It remains unclear whether Hayvn has completed the acquisition.

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