Abu Dhabi imposes Rs 107 crore fine on Hayvn Group, ex-CEO

In a significant joint enforcement action, the Financial Services Regulatory Authority (FSRA) and the Registration Authority (RA) of Abu Dhabi Global Market (ADGM) have imposed penalties totalling USD 12.46 million (Rs 1,07,27,62,760) on the virtual asset trading platform Hayvn Group, its former CEO Christopher Flinos, and related entities for serious regulatory breaches in their operations.

The investigation revealed that Hayvn ADGM, a subsidiary of Hayvn Cayman, allowed transactions to flow through accounts held by an unlicensed entity, AC Holding, while failing to meet Anti-Money Laundering (AML) requirements.

As a result, the FSRA cancelled Hayvn ADGM’s financial services permission and indefinitely banned Flinos from any financial services function within ADGM.

The penalties include:

• USD 3.6 million (Rs 30,99,47,506) against Hayvn Cayman for offering unlicensed virtual asset services.
• USD 3 million (Rs 25,82,89,589) against Hayvn ADGM for exceeding its scope of operations.
• USD 1.5 million (Rs 12,91,44,794) against AC Holding for conducting unlicensed financial activities.
• USD 750,000 (Rs 6,45,72,397) against Flinos for his central role in the misconduct.

“The FSRA will take robust and appropriate enforcement action against individuals and entities that violate our regulatory framework,” said Emmanuel Givanakis, CEO of FSRA at ADGM.

He highlighted the severity of the violations, including unauthorised virtual asset activities and false information provided by Christopher Flinos during the investigation. Such misconduct will lead to significant penalties and serve as a deterrent.

Additionally, the RA imposed further fines, totalling USD 3.61 million (Rs 31,08,08,472), for fraudulent activities including submitting false accounts and facilitating unlicensed cryptocurrency transactions. Flinos was also banned from being a director within ADGM for 15 years.

Hamad Sayah Al Mazrouei, CEO of ADGM Registration Authority, emphasised that maintaining business integrity and confidence in ADGM is a top priority. The authority is committed to preventing harmful conduct and will take strong disciplinary actions, including banning individuals who pose a risk to investors, from holding leadership roles in ADGM companies.

This action underscores ADGM regulators’ commitment to maintaining the integrity of the financial market and enforcing strict compliance with regulations.