Abu Dhabi’s financial regulator has fined crypto firm Hayvn and its CEO more than $12 million for AML breaches and unlicensed activity.
The Financial Services Regulatory Authority of Abu Dhabi Global Market has taken enforcement action against Hayvn Group and its former CEO, Christopher Flinos, for regulatory breaches and unlicensed crypto activity. In a press release on Monday, April 14, the FSRA said it imposed a total of $8.85 million in fines and cancelled the financial services license of Hayvn.
In addition, ADGM’s Registration Authority also imposed a separate fine of $3.6 million, of which $3.3 million was imposed on Flinos for “engaging in various fraudulent schemes.”
Other fines include $3.6 million against Hayvn Cayman, $3 million against Hayvn ADGM, $1.5 million against AC Holding, and $750,000 against Flinos himself, the FSRA said, adding that it banned Flinos from holding any financial services role in ADGM.
According to the financial regulator, Hayvn ADGM allowed client transactions to pass through accounts held by AC Holding, an unlicensed entity. The regulator says the firm “failed to establish and maintain adequate systems and controls to manage its operations and risks” as well as to record all of its client relationships, thereby breaching AML requirements.
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The FSRA also found that Hayvn Cayman and AC Holding “routed client transactions related to the conversion of Virtual Assets to fiat currency and vice versa through the 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 “over 200 false and misleading documents.”
According to Hayvn’s website, the platform let users trade crypto through over-the-counter services and accept crypto payments both online and in person. In November 2022, Hayvn’s board approved a plan to bid for FTX‘s payments unit, FTX Pay, through a public process. Flinos said at the time that FTX Pay was a valuable asset “because of its relationships with big companies such as Mastercard.” It remains unclear whether Hayvn ever completed the acquisition.
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