The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has taken enforcement action against the Hayvn Group of Companies following an investigation that uncovered serious regulatory breaches and misconduct.
The investigation resulted in the cancellation of Hayvn ADGM’s Financial Services Permission, an indefinite prohibition on former CEO Christopher Flinos from performing any function in financial services within ADGM, and financial penalties totalling $8.85 million across four parties.
The penalties were distributed as follows: $3.6 million against Hayvn Cayman (AC Holding Limited registered in the Cayman Islands), $3 million against Hayvn ADGM (AC Limited), $1.5 million against AC Holding Limited (an ADGM-registered SPV), and $750,000 against Christopher Flinos personally.
Hayvn CEO banned from financial services after ADGM investigation
According to the FSRA, the investigation identified multiple serious breaches, including Hayvn ADGM exceeding the scope of its permission by routing client transactions through AC Holding, an unregulated entity.
The regulator found that both Hayvn Cayman and AC Holding conducted unlicensed financial services related to virtual assets in ADGM from approximately October 2018 to May 2024.
The FSRA also determined that Christopher Flinos played a central role in directing the unlicensed activity and lacked integrity in his duties as Senior Executive Officer of Hayvn ADGM.
“The FSRA will take robust and appropriate enforcement action against individuals and entities that violate our regulatory framework. In this case, the actions of the entities and individuals involved were particularly serious, as they conducted unauthorised Virtual Asset activities through an unregulated entity based in ADGM. Furthermore, Christopher Flinos was found to have provided false and misleading information and statements during the investigation. Such misconduct will not be tolerated and warrants strong regulatory penalties which send a strong message of deterrence,” Emmanuel Givanakis, CEO of the FSRA of ADGM said.
The investigation further revealed that the parties created and disseminated false and misleading information, including over 200 false documents on AC Holding letterheads provided to banking partners.
The FSRA also stated that Hayvn ADGM, Hayvn Cayman, and Christopher Flinos provided false information to regulators during the investigation.
“To address this serious misconduct, the licence of Hayvn ADGM has been cancelled, significant fines have been imposed on the entities involved, and Christopher Flinos has been prohibited from holding any functions in relation to financial services in ADGM. The FSRA remains ever-vigilant and committed to holding entities and individuals accountable for their actions and ensuring the integrity of the financial system in ADGM,” Givanakis added.
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