Abu Dhabi’s monetary regulator has fined crypto agency Hayvn and its CEO greater than $12 million for AML breaches and unlicensed exercise.
The Monetary Companies Regulatory Authority of Abu Dhabi World Market has taken enforcement motion towards Hayvn Group and its former CEO, Christopher Flinos, for regulatory breaches and unlicensed crypto exercise. In a press launch on Monday, April 14, the FSRA stated it imposed a complete of $8.85 million in fines and cancelled the monetary companies license of Hayvn.
As well as, ADGM’s Registration Authority additionally imposed a separate effective of $3.6 million, of which $3.3 million was imposed on Flinos for “partaking in numerous fraudulent schemes.”
Different fines embody $3.6 million towards Hayvn Cayman, $3 million towards Hayvn ADGM, $1.5 million towards AC Holding, and $750,000 towards Flinos himself, the FSRA stated, including that it banned Flinos from holding any monetary companies function in ADGM.
Based on the monetary regulator, Hayvn ADGM allowed consumer transactions to move by way of accounts held by AC Holding, an unlicensed entity. The regulator says the agency “failed to ascertain and keep satisfactory programs and controls to handle its operations and dangers” in addition to to file all of its consumer relationships, thereby breaching AML necessities.
The FSRA additionally discovered that Hayvn Cayman and AC Holding “routed consumer transactions associated to the conversion of Digital Belongings to fiat forex and vice versa by way of the accounts held and managed by AC Holding.” The investigation additionally discovered that Hayvn Cayman, AC Holding, and Flinos “created and disseminated false and deceptive data,” together with “over 200 false and deceptive paperwork.”
Based on Hayvn’s web site, the platform let customers commerce crypto by way of over-the-counter companies and settle for crypto funds each on-line and in particular person. In November 2022, Hayvn’s board authorised a plan to bid for FTX‘s funds unit, FTX Pay, by way of a public course of. Flinos stated on the time that FTX Pay was a priceless asset “due to its relationships with large corporations similar to Mastercard.” It stays unclear whether or not Hayvn ever accomplished the acquisition.
