The Registration Authority (RA) and the Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) have concluded investigations into multiple regulatory violations by AC Holding Limited (AC Holding), its sole director and shareholder Christopher Flinos, and affiliated entities operating under the ‘HAYVN’ brand.
AC Holding Operated Beyond Its Licensed Scope
According to the RA, AC Holding misused its ADGM Special Purpose Vehicle (SPV) commercial license by operating as an unlicensed investment business. The company facilitated crypto-to-fiat and fiat-to-crypto transactions, despite lacking proper authorization. Additionally, it submitted four falsified annual financial statements between 2019 and 2022.
Christopher Flinos was found to have engaged in fraudulent trading practices and was directly involved in falsifying hundreds of corporate documents to support unlicensed banking operations.
As a result, the RA issued financial penalties totaling US$3.615 million, broken down as follows:
- US$15,000 against AC Holding for operating beyond its license.
- US$300,000 for submitting false financial accounts.
- US$3.3 million against Christopher Flinos for fraudulent conduct and providing false information.
Flinos has also been disqualified from serving as a director of any ADGM-registered company for 15 years due to being deemed unfit to hold such a position.
FSRA Uncovers Extensive Regulatory Breaches
In a parallel investigation, the FSRA uncovered that the HAYVN group conducted substantial unlicensed financial services between October 2018 and May 2024, allowing client transactions through accounts controlled by the unregulated AC Holding. These actions exposed clients to financial risk and violated ADGM’s regulatory framework.
The FSRA determined that the group operated with inadequate systems, engaged in misleading conduct, and falsified documents to misrepresent their operations to both banks and the regulator.
As a result, the FSRA has imposed US$8.85 million in penalties on the following parties:
- US$3.6 million on Hayvn Cayman, the parent company.
- US$3 million on Hayvn ADGM, its licensed subsidiary.
- US$1.5 million on AC Holding for unlicensed activity.
- US$750,000 on Christopher Flinos personally.
ADGM Authorities Reinforce Commitment to Compliance
Hamad Sayah Al Mazrouei, CEO of the ADGM Registration Authority, commented:
“Maintaining business integrity and safeguarding confidence within ADGM are our top priorities. Where breaches are found, we will act decisively and proportionately to uphold our regulatory standards.”
Emmanuel Givanakis, CEO of the FSRA, added:
“Violations of our financial regulations will not be tolerated. The FSRA will take strong and appropriate enforcement actions against individuals and companies who compromise our regulatory environment.”
This enforcement action highlights ADGM’s firm stance on compliance and the serious consequences of regulatory breaches within its jurisdiction.
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