{"investigation":{"slug":"figure-heloc","entity_name":"Figure Heloc","trust_score":42,"severity_base":null,"score_modifier":0,"confidence":0.72,"status":"published","content_type":"investigation","summary":"FIGR_HELOC is the ~$18B market-cap tokenized HELOC pool on Provenance Blockchain originated by Figure Lending LLC (NASDAQ: FIGR). It sits at #9 among all cryptos by market cap as of May 2026. The issuer faces two active federal class actions, a credible short-seller report from Morpheus Research alleging blockchain misrepresentation backed by Figure's own SEC filings, rising delinquency rates, Provenance blockchain centralization concerns, and a 2026 data breach affecting ~967,000 users.","sections":[{"content":"Morpheus Research published a short report citing Figure's own S-1/A SEC filing, which states that the loan origination system 'does not rely on the use of blockchain technology' — contradicting the company's core marketing claim of being a blockchain-based lending platform.","heading":"Blockchain Misrepresentation Allegations","sources":[{"url":"https://www.morpheus-research.com/figure/","name":"Morpheus Research: Figure Technology Smoke And Mirrors","type":"research","credibility":2},{"url":"https://www.sec.gov/Archives/edgar/data/2064124/000162828025041837/figuretechnologysolutionsi.htm","name":"FIGR SEC S-1/A Filing","type":"regulatory","credibility":1},{"url":"https://thedefiant.io/news/defi/figure-clashes-with-short-seller-over-blockchain-lending-claims","name":"The Defiant: Figure Clashes With Short Seller","type":"news_article","credibility":2}],"severity":"critical"},{"content":"In February 2026, Figure suffered a data breach (attributed to ShinyHunters) affecting approximately 967,200 accounts with SSNs exposed. An active class action (Case No. 3:26-cv-00135) has been filed in response.","heading":"2026 Data Breach","sources":[{"url":"https://www.classaction.org/news/figure-lending-facing-class-action-lawsuit-over-february-2026-data-breach","name":"ClassAction.org: Figure Lending Data Breach","type":"news_article","credibility":2},{"url":"https://topclassactions.com/lawsuit-settlements/lawsuit-news/figure-technology-confirms-data-breach-affecting-nearly-1-million-users/","name":"TopClassActions: Figure Data Breach","type":"news_article","credibility":2}],"severity":"critical"},{"content":"DL News and DefiLlama questioned whether $18B in off-chain assets constitutes a legitimate top-10 cryptocurrency, as the token represents tokenized home equity loans rather than a traditional crypto asset.","heading":"RWA Classification Controversy","sources":[{"url":"https://www.dlnews.com/articles/defi/figure-heloc-becomes-tenth-biggest-crypto/","name":"DL News: Figure Heloc Becomes 10th Biggest Crypto","type":"news_article","credibility":2}],"severity":"high"},{"content":"Ward v. Figure Lending (Case No. 3:24-cv-00533, filed June 2024) alleges bait-and-switch from HELOC to closed-end loan products. 90+ day delinquency rates are allegedly 2x competitors; loan balance delinquency rose from 3.91% (2024) to 5.46% (2025).","heading":"HELOC Misrepresentation Class Action","sources":[{"url":"https://www.classaction.org/news/class-action-lawsuit-claims-figure-lending-misled-borrowers-misrepresented-loans-as-helocs","name":"ClassAction.org: Figure Lending Misled Borrowers","type":"news_article","credibility":2},{"url":"https://www.nationalmortgagenews.com/news/figure-lending-accused-of-bait-and-switch-tactics-in-suit","name":"National Mortgage News: Figure Bait-and-Switch","type":"news_article","credibility":2},{"url":"https://www.law360.com/real-estate-authority/articles/1845048/fintech-lender-ran-bait-switch-with-borrowers-suit-says","name":"Law360: Fintech Lender Bait and Switch","type":"news_article","credibility":1}],"severity":"high"},{"content":"Morpheus Research alleges 65%+ HASH concentration with Figure/Cagney. HASH token is down ~90% from peak. Figure assumed operational control of Provenance Blockchain Foundation in January 2026.","heading":"Provenance Blockchain Centralization","sources":[{"url":"https://www.theblock.co/post/386526/figure-operational-role-provenance-blockchain-foundation-community-structure","name":"The Block: Figure Takes Operational Role at Provenance","type":"news_article","credibility":2}],"severity":"high"},{"content":"CEO Mike Cagney resigned from SoFi in 2017 amid sexual harassment allegations and subsequent $75K settlement. Figure's bank charter application was withdrawn in 2023.","heading":"CEO Background","sources":[{"url":"https://fortune.com/2017/09/12/sofi-ceo-mike-cagney-resigns/","name":"Fortune: SoFi CEO Mike Cagney Resigns","type":"news_article","credibility":1},{"url":"https://www.cnbc.com/2018/01/02/the-sofi-ceo-who-was-ousted-amid-sexual-harassment-allegations-is-already-back-with-a-new-startup.html","name":"CNBC: SoFi CEO Ousted Amid Harassment","type":"news_article","credibility":1},{"url":"https://www.bloomberg.com/news/articles/2023-08-01/figure-cagney-s-blockchain-firm-pulls-bank-charter-application","name":"Bloomberg: Figure Withdraws Bank Charter","type":"news_article","credibility":1}],"severity":"medium"},{"content":"$339M adjusted revenue (2024, +60% YoY). Goldman/Jefferies DART partners. S&P-rated securitization (AAA). Pantera-backed. Listed on Nasdaq at $5.3B valuation in September 2025.","heading":"Legitimate Business Metrics","sources":[{"url":"https://decrypt.co/339024/blockchain-lender-figure-nasdaq-5-3-billion-valuation","name":"Decrypt: Figure Hits Nasdaq at $5.3B","type":"news_article","credibility":2},{"url":"https://panteracapital.com/blockchain-letter/figure-ipo-where-capital-markets-meet-blockchain/","name":"Pantera Capital: Figure IPO","type":"research","credibility":2}],"severity":"low"}],"timeline":[{"date":"2018","event":"Figure Technologies founded by Mike Cagney","source":"multiple","source_url":"","date_original":"2018-01-01"},{"date":"2023-08","event":"Figure withdraws bank charter application","source":"bloomberg.com","source_url":"https://www.bloomberg.com/news/articles/2023-08-01/figure-cagney-s-blockchain-firm-pulls-bank-charter-application","date_original":"2023-08-01"},{"date":"2024-06","event":"HELOC misrepresentation class action filed (Ward v. Figure)","source":"classaction.org","source_url":"https://www.classaction.org/news/class-action-lawsuit-claims-figure-lending-misled-borrowers-misrepresented-loans-as-helocs","date_original":"2024-06-01"},{"date":"2025-09","event":"Figure lists on Nasdaq at $5.3B valuation","source":"decrypt.co","source_url":"https://decrypt.co/339024/blockchain-lender-figure-nasdaq-5-3-billion-valuation","date_original":"2025-09-01"},{"date":"2025-09-15","event":"RWA ranking controversy: FIGR_HELOC enters top-10 crypto by market cap","source":"dlnews.com","source_url":"https://www.dlnews.com/articles/defi/figure-heloc-becomes-tenth-biggest-crypto/"},{"date":"2025-12","event":"Morpheus Research publishes short report on Figure","source":"morpheus-research.com","source_url":"https://www.morpheus-research.com/figure/","date_original":"2025-12-01"},{"date":"2026-01-15","event":"Figure assumes operational control of Provenance Blockchain Foundation","source":"theblock.co","source_url":"https://www.theblock.co/post/386526/figure-operational-role-provenance-blockchain-foundation-community-structure"},{"date":"2026-01-28","event":"Data breach affecting ~967,200 accounts (ShinyHunters)","source":"topclassactions.com","source_url":"https://topclassactions.com/lawsuit-settlements/lawsuit-news/figure-technology-confirms-data-breach-affecting-nearly-1-million-users/"},{"date":"2026-02-15","event":"Data breach class action filed (Case No. 3:26-cv-00135)","source":"classaction.org","source_url":"https://www.classaction.org/news/figure-lending-facing-class-action-lawsuit-over-february-2026-data-breach"}],"sources_used":[{"url":"https://www.morpheus-research.com/figure/","name":"Morpheus Research: Figure Technology","type":"research","archive_url":"http://web.archive.org/web/20260519025542/https://www.morpheus-research.com/figure/","credibility":2,"archive_timestamp":"2026-05-19T02:55:42+00:00"},{"url":"https://www.sec.gov/Archives/edgar/data/2064124/000162828025041837/figuretechnologysolutionsi.htm","name":"FIGR SEC S-1/A Filing","type":"regulatory","archive_url":"https://web.archive.org/web/20260725061651/https://www.sec.gov/Archives/edgar/data/2064124/000162828025041837/figuretechnologysolutionsi.htm","credibility":1,"archive_timestamp":"2026-07-25T06:16:51+00:00"},{"url":"https://www.dlnews.com/articles/defi/figure-heloc-becomes-tenth-biggest-crypto/","name":"DL News: Figure Heloc Top 10","type":"news_article","archive_url":"http://web.archive.org/web/20260630151508/https://www.dlnews.com/articles/defi/figure-heloc-becomes-tenth-biggest-crypto/","credibility":2,"archive_timestamp":"2026-06-30T15:15:08+00:00"},{"url":"https://www.classaction.org/news/class-action-lawsuit-claims-figure-lending-misled-borrowers-misrepresented-loans-as-helocs","name":"ClassAction.org: Borrower Misrepresentation","type":"news_article","archive_url":"http://web.archive.org/web/20260619111224/https://www.classaction.org/news/class-action-lawsuit-claims-figure-lending-misled-borrowers-misrepresented-loans-as-helocs","credibility":2,"archive_timestamp":"2026-06-19T11:12:24+00:00"},{"url":"https://www.law360.com/real-estate-authority/articles/1845048/fintech-lender-ran-bait-switch-with-borrowers-suit-says","name":"Law360: Bait and Switch","type":"news_article","archive_url":"https://web.archive.org/web/20260725101320/https://www.law360.com/real-estate-authority/articles/1845048/fintech-lender-ran-bait-switch-with-borrowers-suit-says","credibility":1,"archive_timestamp":"2026-07-25T10:13:20+00:00"},{"url":"https://www.classaction.org/news/figure-lending-facing-class-action-lawsuit-over-february-2026-data-breach","name":"ClassAction.org: Data Breach","type":"news_article","archive_url":"https://web.archive.org/web/20260724235058/https://www.classaction.org/news/figure-lending-facing-class-action-lawsuit-over-february-2026-data-breach","credibility":2,"archive_timestamp":"2026-07-24T23:50:58+00:00"},{"url":"https://fortune.com/2017/09/12/sofi-ceo-mike-cagney-resigns/","name":"Fortune: SoFi CEO Resigns","type":"news_article","archive_url":"https://web.archive.org/web/20260725045231/https://fortune.com/2017/09/12/sofi-ceo-mike-cagney-resigns/","credibility":1,"archive_timestamp":"2026-07-25T04:52:31+00:00"},{"url":"https://www.bloomberg.com/news/articles/2023-08-01/figure-cagney-s-blockchain-firm-pulls-bank-charter-application","name":"Bloomberg: Bank Charter Withdrawn","type":"news_article","archive_url":null,"credibility":1,"archive_error":"error:no-request","archive_status":"unarchivable","archive_timestamp":null},{"url":"https://decrypt.co/339024/blockchain-lender-figure-nasdaq-5-3-billion-valuation","name":"Decrypt: Figure Nasdaq IPO","type":"news_article","archive_url":"http://web.archive.org/web/20260515050621/https://decrypt.co/339024/blockchain-lender-figure-nasdaq-5-3-billion-valuation","credibility":2,"archive_timestamp":"2026-05-15T05:06:21+00:00"},{"url":"https://www.theblock.co/post/386526/figure-operational-role-provenance-blockchain-foundation-community-structure","name":"The Block: Provenance Foundation","type":"news_article","archive_url":"http://web.archive.org/web/20260122144725/https://www.theblock.co/post/386526/figure-operational-role-provenance-blockchain-foundation-community-structure","credibility":2,"archive_timestamp":"2026-01-22T14:47:25+00:00"}],"source_tags":["claude-code-investigator"],"addresses":[],"reviewed":false,"reviewed_by":null,"model_used":"claude-code-investigator","created_at":"2026-05-12T21:59:37.148878+00:00","updated_at":"2026-07-25T10:30:00.273641+00:00"}}