Australian businessmen are accused of misleading investors after the crypto company collapsed. Christopher Frinos was banned in the Cayman Islands and Abu Dhabi after his crypto company, Hayhun, collapsed amid allegations of fraud in Melbourne.
Reports show Christopher Frinos has established himself as a regulated, compliant payment solution for cryptocurrency payment approval, liquidation and settlement. The company has also obtained a license to operate in the Cayman Islands.
However, his company’s license was cancelled in June by the Cayman Islands Monetary Authority (CIMA), and Furinos banned the country’s company director.
Australian businessman has been accused of misleading investors
The report says prior to the ban on the Cayman Islands, regulators in Dubai, the UAE capital, have filed allegations of fraud against him, alleging that his company, Hayvn, had failed to comply with anti-money laundering rules.
Flinos served as the company’s chief executive officer, and an official notice issued by the Abu Dhabi Global Market Registration Bureau on March 30 showed that he owns a third of his business.
According to Hayvn’s website, Flinos has been the company’s CEO since 2019, and before that he worked as an investment banker. In 2014 he helped set up Ch Stirling, a boutique investment bank in Dubai. According to Bloomberg, there was a full-size table at the reception.
Additionally, he also worked at Abu Dhabi Commercial Bank and Merrill Lynch. Hayvn said he agreed to local business Bonue Smart.
The business provided payment terminals to pubs, clubs and other businesses in the hospitality industry. In this way, thousands of merchants can offer their clients a seamless crypto payment solution, according to a press release issued by Flinos.
In another 2023 interview, Flinos increased the safety of Hayvn following the collapse of Crypto Exchange FTX.
“Now, people are worried about where the coins are stored, and the ability to provide custody services to clients within a regulated environment is becoming increasingly important,” he said. He added that Hayvn will focus primarily on business clients, which will allow him to fly a bit under the radar. “When it comes to virtual assets, we have quietly built perhaps the biggest business in the Middle East, but it’s well enough from the many media,” he added.
Cayman Islands and Abu Dhabi Authority Sanctions Hulinos
In a 39-page notice issued in March, Abu Dhabi authorities said that Furinos misunderstood that about another company called AC Holdings, and that the bank has obtained a license to act as a passive investment company.
Authorities said the Australians used the company as a payment process for Hayvn and its crypto users, instead of acting as licensed. The agency said Flinos was engaged in fraud by “promoting the tampering of hundreds of company documents,” including bank account applications, invoices and AC Holding company accounts.
In another notice released in April, authorities said it was not compliant with AML rules as one of the Hayvn companies has no evidence to conduct risk assessments on six customers. When the company ultimately conducted due diligence, authorities said they were unable to assess what kind of business their clients were involved in and where they came from. He added that one of his clients could not be identified as “political person.”
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