Morpheus Research's 4-month investigation concludes Figure Technology is a $7.7 billion home equity lender masquerading as a blockchain innovator, with exaggerated or fabricated claims about blockchain-enabled advantages. The company's loan origination system doesn't use blockchain technology—it relies on third-party tools like Plaid and CoreLogic, contradicting repeated executive claims that loans are "native" to blockchain. Figure's blockchain projects including Figure Connect, Democratized Prime, and YLDS have either stalled or are internally propped up, while aggressive underwriting practices reminiscent of pre-2008 lending—full-draw requirements, lax title checks, automated valuations without appraisals—are driving delinquencies to 5.46% in 2025 versus 1.79% for Bank of America, alongside insider stock dumps totaling $120 million despite lock-up agreements.