Huge Fines for CEOs and Crypto Companies in Abu Dhabi, Reaching $12 Million!

Updated

April 15, 2025

Gambar Huge Fines for CEOs and Crypto Companies in Abu Dhabi, Reaching $12 Million!

Jakarta, Pintu News – Abu Dhabi’s financial authorities recently announced the imposition of a significant fine on crypto company Hayvn and its former CEO, Christopher Flinos.

The fine amounts to over $12 million for money laundering and unlicensed activity violations. This decision highlights the increased scrutiny and regulation in the ever-growing crypto industry.

Check out the full news below!

Fines and License Cancellation

The Abu Dhabi Global Market Financial Services Regulatory Authority (FSRA) has imposed harsh sanctions on Hayvn Group and Christopher Flinos. The FSRA imposed a total fine of $8.85 million and canceled Hayvn’s financial services license.

This action was taken after discovering that Hayvn Group was conducting crypto activities without a proper license. The ADGM Registration Authority also imposed a separate fine of $3.6 million.

Of this amount, $3.3 million was imposed on Flinos for engaging in various fraudulent schemes. These fines reflect the seriousness of the offenses committed and ADGM’s commitment to maintaining the integrity of the financial markets.

Also read: Google’s Big Change for Crypto Ads in the EU, What Will the Policy Be?

Violations and Abuse

According to FSRA, Hayvn ADGM allowed client transactions through accounts held by AC Holding, an unlicensed entity. This demonstrates the firm’s failure to establish and maintain adequate systems and controls to manage operations and risks.

These violations fall into the serious category related to compliance with anti-money laundering (AML) regulations. Hayvn Cayman and AC Holding were found to have routed client transactions relating to converting Virtual Assets to fiat currency and vice versa through accounts held and controlled by AC Holding.

In addition, the investigation found that Hayvn Cayman, AC Holding and Flinos had created and disseminated false and misleading information, including more than 200 false and misleading documents.

Also read: Vitalik Buterin Pushes for Strong Social Philosophy in Ethereum Application Layer!

Broader Implications

This case highlights the importance of strict regulation in the dynamic crypto industry. Hayvn’s breach and the FSRA’s decisive action send a strong message to all market participants about the importance of compliance with laws and regulations.

It also shows that global financial authorities are increasingly intolerant of illegal activities within the crypto sector. In November 2022, Hayvn’s board approved plans to submit a bid for FTX’s payment unit, FTX Pay, through a public process.

While it is unclear whether the acquisition has been completed, the case demonstrates the complexity and risks associated with transactions and business expansion in the crypto industry.

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