REST IN HAYVN: The Rise and Fall of a Once-Promising Digital Asset Firm

In a significant joint enforcement action, the Financial Services Regulatory Authority (FSRA) and the Registration Authority (RA) of Abu Dhabi Global Market (ADGM) concluded parallel investigations into AC Holding Limited (HAYVN) and its former CEO Christopher Flinos, imposing cumulative financial penalties totaling $12.46 million and issuing permanent regulatory sanctions.

According to the FSRA, Flinos engaged in fraudulent trading, falsified company documents to maintain banking relationships, and exceeded the scope of HAYVN’s ADGM license by offering unlicensed cryptocurrency-to-fiat conversion services.

Details of Misconduct and Regulatory Findings

Unlock Blockchain has followed the HAYVN story since early 2024, when signs of board-level turmoil, a sudden CEO resignation, and technical disruptions first emerged. (Read our earlier coverage here)

The investigations by ADGM’s FSRA and RA found that between October 2018 and May 2024, AC Holding Limited (HAYVN) engaged in serious and sustained misconduct. This included:

• Submitting four false annual accounts between 2019 and 2022 to the RA.
• Exceeding the permitted scope of its Special Purpose Vehicle (SPV) license by operating as a crypto investment and transaction platform.
• Routing unlicensed virtual asset transactions through both its ADGM and Cayman-based entities.
• Facilitating the falsification of more than 200 company documents, submitted under AC Holding letterhead to banking institutions, in order to fraudulently maintain and open bank accounts.

The misconduct involved misleading multiple counterparties, including clients and banking partners, and revealed widespread internal failures in compliance, governance, and transparency. Flinos is accused of centrally directing and concealing these actions across the Hayvn group of companies.

Regulatory Penalties and Enforcement Action

In announcing the enforcement, Hamad Sayah Al Mazrouei, CEO of ADGM Registration Authority, stated: “Maintaining business integrity and safeguarding business confidence in ADGM are at the forefront of the Registration Authority’s objectives. We remain committed to preventing and deterring conduct that may harm businesses, their clients and investors. Where non-compliance is identified, the Registration Authority will take effective, proportionate and dissuasive disciplinary action.”

The FSRA echoed this, “This case illustrates the importance of proper licensing and full disclosure to the FSRA. We take this conduct seriously and will continue to pursue enforcement actions against those who undermine the integrity of ADGM’s financial system,” said Emmanuel Givanakis, CEO of the FSRA.

In a coordinated action, both the Financial Services Regulatory Authority (FSRA) and the Registration Authority (RA) of ADGM issued enforcement decisions following a comprehensive investigation into the operations of the HAYVN group and its founder Christopher Flinos. This joint action reflects the seriousness of the misconduct and the integrated oversight framework within ADGM.

The enforcement resulted in total financial penalties of $12.46 million, imposed separately by the FSRA and RA across multiple parties:

• $3.6 million against Hayvn Cayman (AC Holding Limited registered in the Cayman Islands), the parent company.
• $3 million against Hayvn ADGM, the FSRA-licensed entity.
• $1.5 million against AC Holding, the ADGM-registered Special Purpose Vehicle (SPV).
• $750,000 against Christopher Flinos imposed by the FSRA, for his role as former SEO of Hayvn ADGM and CEO of Hayvn Cayman, where he was found to have centrally directed unlicensed financial activities.
• $3.3 million against Christopher Flinos imposed by the RA, for providing false information, engaging in fraudulent schemes, and falsifying company documents in contravention of ADGM Companies Regulations 2020. And USD 15,000 against AC Holding for exceeding the scope of its license in contravention of ADGM Commercial Licensing Regulations 2015. On top of USD 300,000 against AC Holding for filing false annual accounts about its balances with the RA and various fraudulent schemes in contravention of the ADGM Companies Regulations 2020

In addition:

• The FSRA revoked the Financial Services Permission (FSP) of Hayvn ADGM.
• Christopher Flinos was indefinitely banned from performing any function in financial services businesses within ADGM.

According to regulators, Flinos played a central role in directing unlicensed activities and providing false and misleading information. Over 200 falsified documents were submitted under his direction to support unregulated transactions through the SPV.

Banking Fallout: Who Was Misled?

One of the most significant revelations in FSRA’s findings is that Flinos used falsified company documents to maintain bank accounts. While the full extent of the banking relationships is unclear, sources confirm that Australian banks were involved and not UAE banks.

The extent of potential regulatory scrutiny in Australia remains uncertain. If Australian banks unknowingly facilitated fraudulent transactions, this could trigger further investigations by AUSTRAC (Australia’s financial intelligence unit) or APRA (Australian Prudential Regulation Authority).

Where Does This Leave Deus X Pay?

Deus X Pay has positioned itself as a regulated digital payments company, operating under Virtual Asset Service Provider (VASP) licenses in Lithuania and the Czech Republic. In Lithuania, it operates as Zeply Global UAB, under the supervision of the Financial Crime Investigation Service (FNTT). In the Czech Republic, it operates as TitanToken Tech s.r.o., supervised by the Financial Analytical Office (FAU). Additionally, Deus X Pay is pursuing a license from Dubai’s Virtual Assets Regulatory Authority (VARA), marking a significant step toward establishing its operations in the UAE and reinforcing its commitment to regional expansion.

The company has clarified that while Deus X Capital acquired certain assets from HAYVN, it did not acquire the company itself. Deus X Pay operates independently with its own regulatory licenses and compliance measures, ensuring a structured and compliant framework.

Earlier in its communications, Deus X Pay positioned itself as a rebranding of HAYVN, leading many to assume a direct continuation of the former business. However, in light of recent developments, the narrative has shifted. Deus X Pay now emphasizes its distinct legal and operational identity, seeking to draw a clearer line between its platform and the collapsed HAYVN structure.

As part of its growth, Deus X Pay has welcomed former HAYVN clients and employees, emphasizing its focus on continuity and compliance while building a reputation distinct from past controversies. With a clear operational strategy and regulatory commitment, Deus X Pay is positioning itself as a trusted player in the global digital payments industry.

Could Criminal Charges Follow?

While the regulatory penalties issued by ADGM’s FSRA and RA are civil in nature, the severity and scope of the misconduct — including over 200 falsified documents and misrepresentation to financial institutions — raises the question of whether criminal proceedings could follow. Given that Flinos is currently believed to be residing in Australia, and that an extradition treaty exists between the UAE and Australia, a formal case could potentially cross jurisdictions if authorities decide to pursue further legal action. For now, the matter remains one of regulatory enforcement, but its scale and implications suggest this may not be the final chapter.

The End of HAYVN

With the FSRA’s decision, HAYVN ceases to exist—not as a result of regulatory enforcement alone, but due to failed leadership and mismanagement. Once seen as a promising player in the digital asset space, its downfall reflects the consequences of corporate misconduct.

At the same time, the case also stands as a testament to the robustness and maturity of ADGM’s regulatory ecosystem. The coordinated action between the FSRA and the RA underscores ADGM’s ability to detect, investigate, and act decisively against wrongdoing — even when it involves a high-profile market player. As global digital asset markets evolve, ADGM continues to demonstrate its commitment to transparency, accountability, and investor protection.

While the industry moves forward, HAYVN’s legacy will remain a cautionary tale of how ambition, when unchecked by compliance, can lead to collapse.