Abu Dhabi’s financial watchdog has issued sweeping penalties against crypto firm Hayvn Group and its former CEO Christopher Flinos, citing serious breaches of anti-money laundering (AML) regulations and unlicensed financial activity. The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) announced the enforcement actions on April 14, underscoring its commitment to regulatory oversight within the region’s digital asset ecosystem.
Over $12 Million in Fines and a License Revoked
According to the FSRA, Hayvn and its entities have been fined a total of $8.85 million, and the firm’s financial services license has been cancelled. In parallel, the Registration Authority of ADGM levied a separate fine of $3.6 million, with $3.3 million directly attributed to Flinos for his role in “engaging in various fraudulent schemes.”
The breakdown of penalties includes:
- $3.6 million against Hayvn Cayman
- $3 million against Hayvn ADGM
- $1.5 million against AC Holding
- $750,000 against Christopher Flinos
Additionally, Flinos has been permanently banned from holding any financial services position within ADGM.
Breaches Involving Unlicensed Entities and AML Failures
The FSRA’s investigation revealed that Hayvn ADGM had allowed client transactions to pass through accounts operated by AC Holding, an unlicensed entity. The firm was found to have inadequate systems and controls, failing to meet basic operational and risk-management standards. It also violated AML requirements by not properly recording client relationships.
Moreover, both Hayvn Cayman and AC Holding routed transactions—related to crypto-to-fiat and fiat-to-crypto conversions—through AC Holding’s unauthorized accounts. The investigation further uncovered that over 200 false or misleading documents had been created and disseminated by Flinos, Hayvn Cayman, and AC Holding to misrepresent the firm’s compliance posture and business activity.
Hayvn’s Ambitions and Public Profile
Hayvn previously presented itself as a regulated digital asset platform offering over-the-counter crypto trading and payment solutions for online and in-person merchants. The firm attracted attention in November 2022, when it publicly declared interest in acquiring FTX Pay, the payments unit of the now-defunct crypto exchange FTX.
At the time, Flinos stated that FTX Pay had value because of its corporate relationships, including one with Mastercard. However, it remains unclear whether Hayvn ever completed the acquisition or how its alleged internal misconduct may have impacted the deal.
Final Thoughts
This high-profile enforcement action signals a firm stance by ADGM against non-compliant crypto firms, especially those seeking to operate within a regulated jurisdiction. The penalties against Hayvn and its leadership highlight growing regulatory scrutiny and the importance of transparent operations, robust AML systems, and proper licensing in the rapidly evolving digital asset landscape.
As ADGM continues to position itself as a global crypto hub, such enforcement actions send a clear message: compliance is not optional.
