Abu Dhabi Slaps Crypto Firm Hayvn and CEO with Over $12M in Fines for Shady Moves

Regulatory Hammer Drops on Hayvn and Ex-CEO Christopher Flinos

Hold onto your hats, crypto fans! Abu Dhabi's financial watchdog just dropped a bombshell, fining crypto outfit Hayvn and its former CEO more than $12 million for some serious anti-money laundering (AML) slip-ups and flying under the radar without a license.

The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) isn't messing around. They've slammed Hayvn Group and ex-CEO Christopher Flinos with a hefty $8.85 million in fines and yanked Hayvn's financial services license right out from under them. This news hit the wires on Monday, April 14, and it's sending shockwaves through the crypto world.

But wait, there's more! ADGM's Registration Authority isn't letting Flinos off the hook either. They've slapped him with a separate $3.3 million fine for pulling off "various fraudulent schemes." Ouch!

The fines keep piling up: Hayvn Cayman got hit with $3.6 million, Hayvn ADGM with $3 million, AC Holding with $1.5 million, and Flinos himself with another $750,000. The FSRA also banned Flinos from ever holding a financial services role in ADGM again. Talk about a career killer!

So, what did Hayvn ADGM do to deserve this? Turns out, they let client transactions flow through accounts held by AC Holding, an unlicensed entity. The regulator says Hayvn ADGM totally dropped the ball on setting up proper systems and controls to manage their operations and risks, not to mention keeping track of all their client relationships. That's a big no-no when it comes to AML requirements.

But the drama doesn't stop there. The FSRA also found that Hayvn Cayman and AC Holding were routing client transactions for converting virtual assets to fiat and back through AC Holding's accounts. And if that wasn't bad enough, the investigation uncovered that Hayvn Cayman, AC Holding, and Flinos were spreading false and misleading info, including over 200 fake documents. These guys were playing fast and loose with the truth!

Hayvn's website claims they let users trade crypto through over-the-counter services and accept crypto payments both online and in person. Back in November 2022, Hayvn's board even approved a plan to bid for FTX's payments unit, FTX Pay, in a public process. Flinos was all about it, saying FTX Pay was a hot commodity "because of its relationships with big companies like Mastercard." But it's still up in the air whether Hayvn ever sealed the deal.