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.
Morpheus, which disclosed it holds short positions in FIGR, called the Nasdaq-listed fintech "little more than a risky home equity lender masquerading as a blockchain innovator.” The firm alleged that Figure's loan origination system does not rely on blockchain, citing the company's own SEC filings, and argued that its suite of crypto-native products, including Figure Connect, Democratized Prime, YLDS, and the OPEN equity network, has either stalled or is propped up internally.
FIGR shares have been under pressure in recent weeks, falling from a January high of $78 to roughly $37 as of today. The company went public in September 2025 at $25 per share, raising $787.5 million.
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