Abu Dhabi’s financial authority has imposed fines exceeding $12 million on the cryptocurrency firm Hayvn and its CEO for violations related to anti-money laundering and engaging in unauthorized operations.
The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market has taken action against Hayvn Group and its former CEO, Christopher Flinos, due to compliance violations and unlicensed cryptocurrency activities. On April 14, the FSRA announced that a total fine of $8.85 million had been levied against Hayvn, alongside the revocation of its financial services license.
Moreover, the Registration Authority of ADGM issued an additional fine amounting to $3.6 million, with $3.3 million specifically attributed to Flinos for “participating in various fraudulent schemes.”
Additional penalties include $3.6 million against Hayvn Cayman, $3 million against Hayvn ADGM, $1.5 million against AC Holding, and $750,000 for Flinos himself. The FSRA also noted that Flinos is forbidden from holding any financial services position within the ADGM.
The regulator asserted that Hayvn ADGM permitted client transactions to be funneled through accounts associated with AC Holding, an unauthorized entity. The firm was cited for “failing to implement and sustain effective systems and controls to oversee its operations and risk management,” as well as for not adequately documenting all client relationships, resulting in violations of AML regulations.
The FSRA further determined that Hayvn Cayman and AC Holding “processed client transactions involving the conversion of virtual assets into fiat currency and vice versa through accounts managed and controlled by AC Holding.” The investigation revealed that Hayvn Cayman, AC Holding, and Flinos “produced and distributed false and misleading information,” which included “more than 200 fraudulent documents.”
As noted on Hayvn’s website, the platform provided services for trading cryptocurrencies via over-the-counter transactions and allowed crypto payments both online and in physical settings. In November 2022, Hayvn’s board sanctioned a plan to pursue the acquisition of FTX’s payments division, FTX Pay, through a public bidding process. Flinos remarked at the time that FTX Pay held significant value “due to its connections with major corporations such as Mastercard.” However, it remains uncertain whether Hayvn successfully finalized the acquisition.