In a significant regulatory crackdown, the Abu Dhabi Global Market (ADGM) has imposed fines totaling $12.4 million on Hayvn Group, its affiliated entities, and the company’s former CEO, Christopher Flinos. This comes after the group was found to have violated multiple financial regulations within the UAE’s financial free zone.
The Financial Services Regulatory Authority (FSRA) imposed a fine of $8.85 million on the group. This includes penalties for entities involved in unapproved virtual asset activities and the misuse of an unregulated platform operating under ADGM. The breakdown of the FSRA fines is as follows:
- $3.6 million: Against AC Holding Ltd., registered in the Cayman Islands, and the parent entity of the Hayvn group.
- $3 million: For Hayvn’s ADGM-based subsidiary, AC Limited, which was licensed to provide certain financial services but exceeded its authorized scope.
- $1.5 million: Levied on AC Holding Ltd., a special purpose vehicle registered with ADGM’s Registration Authority, which operated beyond its approved activities.
- $750,000: Imposed on Flinos for his role in the regulatory breach.
In addition to the FSRA fines, the Registration Authority (RA) has imposed a separate $3.6 million penalty on the involved parties:
- $15,000: Against AC Holding for breaching ADGM Commercial Licensing Regulations.
- $300,000: For filing false financial statements and engaging in fraudulent practices.
- $3.3 million: Against Flinos, who is also banned indefinitely from conducting any business within ADGM for his involvement in falsifying company documents and misleading the authorities.
This crackdown highlights the authorities’ firm stance on maintaining stringent oversight within the financial hub of the UAE, especially as it relates to virtual assets and corporate governance.
