Figure and Short Seller Dispute Blockchain Lending Claims

Figure Technology Solutions is in the middle of a very public dispute this week. Short-seller Morpheus Research published a detailed report accusing the HELOC lender of overstating its reliance on on-chain technology. Morpheus, which has disclosed short positions in FIGR, described the Nasdaq-listed fintech as little more than a risky home equity lender pretending to be a blockchain innovator. The firm claims that Figure's loan origination system does not actually depend on blockchain. They cite Figure's own SEC filings to support this assertion. The short seller also argued that Figure's suite of crypto-native products has either stalled or is being sustained internally. These products include Figure Connect, Democratized Prime, YLDS, and the OPEN equity network. FIGR shares have been under sustained pressure in recent weeks. The stock has fallen from a January high of $78 to approximately $37 today. The company went public in September 2025 at $25 per share, raising $787.5 million. Figure and asset manager Van Eck have pushed back against Morpheus's findings. The dispute hinges on what Figure's filings actually reveal about its technical architecture and how much of its lending pipeline genuinely runs on-chain. We need more independent verification of these claims. Anyone looking at FIGR should examine the SEC filings directly and assess whether the on-chain integration is material to the business or incidental.