Abu Dhabi’s Financial Services Regulatory Authority (FSRA) has handed down hefty fines totaling $8.85 million after a thorough investigation revealed severe regulatory violations by the Hayvn Group, its former CEO Christopher Flinos, and affiliated companies. The penalties follow misconduct tied to virtual asset services that went beyond the legal boundaries of their operational licenses.
The investigation uncovered that three entities under the Hayvn umbrella, including Hayvn ADGM and its parent company Hayvn Cayman, engaged in illicit activities within the Abu Dhabi Global Market (ADGM) between 2018 and 2024. These included unlicensed financial services related to virtual assets, primarily involving the unauthorized conversion of virtual assets to fiat currencies through accounts managed by an unlicensed Special Purpose Vehicle (SPV) known as AC Holding.
The FSRA’s enforcement actions include the cancellation of Hayvn ADGM’s Financial Services Permission (FSP) and an indefinite ban on Flinos from holding any role within financial services in the ADGM. Fines were levied against four entities: $3.6 million against Hayvn Cayman, $3 million on Hayvn ADGM, $1.5 million on AC Holding, and $750,000 on Flinos himself.
The FSRA highlighted the lack of sufficient controls and safeguards within the operations of these companies, which led to a series of unauthorized transactions and a failure to properly record client relationships. Furthermore, the investigation revealed that these companies fabricated over 200 false documents, misleading both banking partners and regulatory authorities, including the FSRA.
Flinos, who was CEO of both Hayvn ADGM and Hayvn Cayman, played a central role in orchestrating these unauthorized activities. His lack of integrity and failure to maintain proper oversight led to significant breaches of trust, undermining the integrity of the regulatory framework within ADGM.
In response to the findings, Emmanuel Givanakis, CEO of the FSRA, affirmed the authority’s commitment to holding violators accountable, stressing that such severe breaches would not be tolerated in ADGM’s financial ecosystem. “The FSRA will take robust and appropriate enforcement action against those who fail to adhere to our regulatory framework, ensuring the continued integrity of the financial system in Abu Dhabi,” Givanakis said.
