An Australian businessman banned within the Cayman Islands and Abu Dhabi after his cryptocurrency group collapsed amid fraud allegations is again residence in Melbourne and dealing at a suburban mortgage broker.
Christopher Flinos ran the globe-spanning crypto firm Hayvn, which billed itself as “a regulated and compliant cost resolution for the authorisation, clearing and settlement of cryptocurrency funds” and was licensed to function within the Cayman Islands.
However in June, the Cayman Islands Financial Authority (CIMA) cancelled the group’s licence and banned Mr Flinos from being an organization director within the Caribbean tax haven. That was after regulators within the United Arab Emirates capital made findings of significant fraud in opposition to him and mentioned Hayvn failed to observe anti-money laundering guidelines.
Hayvn’s web site nonetheless claims it’s regulated by the CIMA, regardless of its licence being revoked in March. (Hayvn)
Mr Flinos was the chief government officer of Hayvn and in addition owned a 3rd of the enterprise, in accordance to an official discover issued by the Abu Dhabi World Market Registration Authority on March 30, banning him from operating an organization in its jurisdiction for 15 years.
Mr Flinos is now working for Balcombe Monetary, a mortgage broker run by his brother, Michael Flinos, that’s licensed by the Australian company regulator.
He’s legally allowed to do that, with no need authorisation from the regulator, Australian Securities and Investments Fee (ASIC).
Talking usually, a spokesperson for ASIC mentioned that authorised representatives comparable to Balcombe Monetary might “sub-authorise an individual (together with staff and administrators) to interact in credit score actions on behalf of the licensee”.
“Licensees have a unbroken obligation to monitor and supervise their representatives to guarantee they’re adequately educated and competent to act as a credit score consultant and are complying with the credit score laws,” the spokesperson mentioned.
‘In all probability’ the largest digital asset enterprise within the Center East
In accordance to a biography on the Hayvn web site, Mr Flinos was CEO of the corporate from 2019 and earlier than that labored as an funding banker.
In 2014, he helped arrange a boutique funding financial institution in Dubai, CH Stirling — which in accordance to a Bloomberg report — boasted a full-size pool desk in its reception, a mini golf course for stress aid and Cuban cigars on supply within the assembly rooms.
He has additionally beforehand labored at Abu Dhabi Business Financial institution and Merrill Lynch.
In 2022, Hayvn mentioned it had expanded into Australia by means of an settlement with an area firm, Venue Good, that offered cost terminals to pubs, golf equipment and different hospitality companies.
The Abu Dhabi markets authority banned Christopher Flinos from being an organization director in its jurisdiction for 15 years. (Unsplash: Faisal Manga)
The deal “permits hundreds of retailers to supply their purchasers a seamless cryptocurrency cost resolution”, Mr Flinos mentioned in a press launch issued at the time.
In a 2023 YouTube interview, Mr Flinos talked up Hayvn’s security following the spectacular failure of multi-billion-dollar crypto change FTX.
FTX collapsed in late 2022 due to fraud perpetrated by its founder Sam Bankman-Fried and his girlfriend Caroline Ellison.
“Folks at the moment are nervous about the place their cash are stored, and the power to present custody companies to our purchasers inside a regulated surroundings is turning into an increasing number of essential,” he mentioned.
Christopher Flinos served as the general public face for Hayvn prior to its collapse. (YouTube: iFX Expo)
He mentioned Hayvn was primarily centered on enterprise purchasers and due to this fact flew “just a little bit underneath the radar”.
“We have quietly gone about constructing most likely the Center East’s largest enterprise when it comes to digital belongings however we keep properly out of lots of the press,” he mentioned.
Authority processes almost $1 billion in funds
In a 39-page discover issued in March, the Abu Dhabi markets authority mentioned Mr Flinos misled it and banks in regards to the actions of an organization he owned known as AC Holding that was licensed within the emirate as a passive funding holding firm.
The authority mentioned in its discover that somewhat than performing as a passive car because it was licensed to, the corporate was performing as a cost processor for Hayvn and its cryptocurrency clients.
It mentioned Mr Flinos engaged in fraud by “facilitating the falsification of a whole bunch of firm paperwork”, together with checking account functions, invoices and AC Holding’s firm accounts.
Mr Flinos additionally “facilitated fraudulent actions to mislead quite a few events in regards to the true nature of the transactions that have been being processed by means of the financial institution accounts” held by AC Holding, the authority mentioned.
This included, it mentioned, making a fictitious contract with a cryptocurrency broker in Kenya to conceal that the broker was buying and selling in crypto.
In April, Abu Dhabi’s monetary regulator reported critical breaches and misconduct allegations linked to Christopher Flinos. (Abu Dhabi World Market)
Different false data allegedly offered by AC Holding included claiming it was within the enterprise of investing in wind farms in Germany and creating 51 cost invoices that included “fictitious merchandise to conceal that the transactions are associated to cryptocurrency”.
The authority mentioned Hayvn processed greater than $US600m ($934m) in funds by means of AC Holding for at least 245 purchasers.
In accordance to the authority’s discover, Mr Flinos admitted that Havyn “wouldn’t have survived” if the financial institution accounts accessed by way of AC Holding have been closed.
It mentioned that based mostly on Mr Flinos’s admissions to it throughout an investigation, his contraventions of Abu Dhabi firm laws have been “intentional and deliberate”.
The authority banned Mr Flinos from being an organization director in its jurisdiction for 15 years, fined him $US3.3m ($5.14m) and fined firms within the Hayvn group a complete of $US7.1m ($11m).
Firm additionally breached cash laundering guidelines
In an April 3 discover, the authority mentioned one of many Hayvn firms failed to adjust to anti-money laundering guidelines as a result of there was no proof it did danger assessments of six clients.
When Hayvn did do due diligence, it was insufficient as a result of it failed to assess what enterprise purchasers have been in and the place their cash got here from, the authority mentioned within the discover.
It additionally discovered that it failed to correctly examine one in all its purchasers although they have been a “politically uncovered individual”. Below international cash laundering guidelines, firms are required to do additional due diligence on politically uncovered folks comparable to politicians and senior authorities officers.
Within the Cayman Islands, the native financial authority CIMA cancelled Mr Flinos’s registration as a director on June 5.
It didn’t present detailed causes for its determination.
However in a call discover, the authority mentioned Mr Flinos breached company regulation and was “not a match and correct individual to maintain a place” as an organization director within the tax haven.
From downtown Abu Dhabi to suburban Black Rock
Whereas Hayvn based mostly its enterprise in a gleaming glass and metal tower on an island overlooking downtown Abu Dhabi, Balcombe Monetary — the mortgage broker the place Mr Flinos now works — runs out of a modest workplace it shares with different companies in suburban Black Rock.
The corporate is authorised as a consultant of Mortgage Market Group, which claims to be Australia and New Zealand’s largest broker community, and has about 6,000 advisers and brokers working underneath its banner.
Chris Flinos now works together with his brother Michael (proper) at a Melbourne mortgage broker. (Balcombe Monetary)
In accordance to its web site, the corporate arranges residence, industrial and funding loans with banks and different monetary establishments.
Mr Flinos’s biography was faraway from the corporate’s web site after the ABC contacted it for remark.
Nonetheless, the web site beforehand described him as a “director” of the enterprise, “specializing in strategic partnerships with lenders, property builders, accountants and different service suppliers”.
Though “director” could also be his job title, Mr Flinos just isn’t listed as a director of the corporate in ASIC paperwork.
A spokesperson for Mortgage Market Group mentioned Mr Flinos was additionally “not accredited or authorised to function as a mortgage broker or present credit score recommendation”.
“He doesn’t maintain entry to our broker platform or methods,” the spokesperson mentioned.
Balcombe Monetary has an workplace house in Black Rock in Melbourne’s south. (ABC Information)
Mr Flinos was not at the handle given as his residence handle in company paperwork when the ABC visited on August 20, and couldn’t be reached for remark. No-one answered the door at Balcombe Monetary’s workplace.
The ABC phoned Michael Flinos and instructed him it was making an attempt to discuss to his brother in regards to the director bans in Cayman Islands and the UAE.
“That is acquired nothing to do with me, man, thanks,” Michael Flinos mentioned.
He then hung up the cellphone.
