The Financial Services Regulatory Authority (FRSA) of Abu Dhabi Global Market (ADGM) has sanctioned HAYVN group and its founder, Christopher Flinos. In a press release on Monday, ADGM confirmed the development.
The statement revealed that FSRA imposed a fine of $8.85 million after conducting an investigation. The regulator also took proactive measures to ensure that the clients of ADGM were not affected by the misconduct.
As part of the enforcement process, HAYVN ADGM Financial Services Permission (FSP) was canceled. The FSRA also prohibits the founder and CEO of HAYVN group from performing any function in a financial service business within the ADGM. The FSRA also imposed $8.85 million on four other related parties.
Breakdown of the $8.85 fine imposed by ADGM regulator
The first party, AC Holding Limited registered in the Cayman Islands (”Hayvn Cayman”), as a virtual assets financial service provider was fined $3.6 million. The second party, AC Limited (Hayvn) (”Hayvn ADGM”) an ADGM-based subsidiary of Hayvn Cayman was fined $3 million. FSRA also slammed a $1.5 million fine against AC Holding Limited (”AC Holding”). In addition to this, $750,000 was imposed on Christoper Filnos.
During the investigation, the regulator uncovered numerous breach and misconduct from HAYVN. First, the HAYVN ADGM breached the scope of operation given to it by FSP. As revealed, HAYVN routed clients transactions through accounts held by AC Holding without any appropriate protection in place. The firm also failed to establish and maintain adequate systems and controls to manage its operations and risk.
The regulator added that HAYVN breached the FSRA Anti-Money Laundering requirements. In addition, Hayvn Cayman and AC Holding also carried out unlicensed virtual asset financial service activities between October 2018 to May 2024.
In light of this, the Chief Executive officer of the FSRA of ADGM has given his reaction to the development. Emmanuel Givanakis (CEO) noted that the regulator would continue to work to ensure that individuals and organizations that violate the regulatory framework are brought to book. He added that the sanctions imposed on the HAYVN Group would serve as a strong message of deterrence to others.
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