SEC · The Defiant
Figure Clashes With Short Seller Over Blockchain Lending Tells
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Figure Technology Solutions found itself at the center of a public battle this week after short-seller Morpheus Research published a detailed report accusing the blockchain-focused HELOC lender of overstating its use of on-chain technology.
Key facts
- The company went public in September 2025 at $25 per share, raising $787.5 million
- Cagney, who co-founded Figure in 2018, has sold roughly $64 million worth of stock since the IPO at an average price of $28.50, according to the Morpheus report
- Sigel also noted that Figure's deterministic underwriting model has compressed production costs to roughly $700 per loan, compared with an $11,000 average for legacy banks, and pointed to preliminary
- FIGR shares have been under pressure in recent weeks, falling from a January high of $78 to roughly $37 as of today
Summary
The company went public in September 2025 at $25 per share, raising $787.5 million. Figure pushed back on claims of deteriorating loan performance, citing a weighted-average delinquency rate of 0.80% across roughly $4.6 billion of securitized assets. It also cited borrower fundamentals, including an average FICO score of approximately 754, average income of around $187,000, and a combined post-loan-to-value ratio of about 62%. Sigel also noted that Figure's deterministic underwriting model has compressed production costs to roughly $700 per loan, compared with an $11,000 average for legacy banks, and pointed to preliminary Q1 operating data showing marketplace volume of $2.9 billion, up 113% year over year. Morpheus Research's report also took aim at the Provenance Blockchain, which Figure describes as an independent Layer 1 network.