Abu Dhabi fines Hayvn Group and its former CEO Rs 107 crore

Abu Dhabi Imposes Rs 107 Crore Fine on Hayvn Group and Former CEO for Regulatory Breaches

In a major enforcement move, the Financial Services Regulatory Authority (FSRA) and the Registration Authority (RA) of Abu Dhabi Global Market (ADGM) have taken strict action against the virtual asset trading firm Hayvn Group, its former CEO Christopher Flinos, and associated entities. Together, the regulators have fined USD 12.46 million (about Rs 107.27 crore) for serious operational malpractice and financial regulation violations.

The Findings of the Investigation

The FSRA’s investigation revealed a number of grave infractions committed by Hayvn ADGM, a division of Hayvn Cayman. Notably, the company used AC Holding, a company that lacked the required permits, to conduct transactions. Furthermore, the inquiry found that Hayvn had violated Anti-Money Laundering (AML) regulations, which are essential to financial operations in order to stop illegal financial activity.

Due to the severity of the findings, the FSRA revoked the financial services license of Hayvn ADGM and permanently banned Christopher Flinos from performing any financial services role within ADGM.

Breakdown of Fines Imposed

Hayvn Cayman was fined USD 3.6 million (Rs 30.99 crore) for offering virtual asset services without authorization.

Hayvn ADGM was fined USD 3 million (Rs 25.82 crore) for operating beyond its permitted scope.

AC Holding was fined USD 1.5 million (Rs 12.91 crore) for conducting unlicensed financial business.

Christopher Flinos was personally fined USD 750,000 (Rs 6.45 crore) for his key role in orchestrating the violations.

Additional fines by the Registration Authority

In addition, ADGM was fined a further US$3.61 million (Rs. 31.08 crore) by the Registration Authority (RA). These were related to facilitating illegal Bitcoin transactions and filing fraudulent financial statements. Citing the risk to investors and the integrity of the financial system, the RA banned Flinos from any directorship within ADGM for 15 years.

Strong comments from ADGM leadership

According to FSRA CEO Emmanuel Kivanakis, the case demonstrates the firm opposition to the regulatory body’s wrongdoing. He cited the deliberate deception and illegal asset transactions given during the investigation as reprehensible actions that will have serious consequences.

Hamad Sayah Al Mazrouei, CEO of the ADGM Registration Authority, reinforced the need to protect investor confidence and the legitimacy of the financial system. He reaffirmed that the RA will continue to take strict measures, such as banning leaders, to keep dangerous individuals out of the ADGM ecosystem.

Regulatory Notice: Negotiable Compliance

This enforcement provides a clear example: serious fines and long-term punishments may result from failure to comply with ADGM’s financial laws. The authorities’ steadfast dedication to maintaining openness, safeguarding investors, and enhancing Abu Dhabi’s standing as a reliable global financial center is demonstrated by this coordinated move.