Figure AI Issues Cease-and-Desist to Secondary Market Brokers

Last month, Brett Adcock, the founder of robotics company Figure AI, announced on X that his firm's stock had become "the most sought-after private share in the secondary market."

However, the company has issued cease-and-desist letters to at least two brokers operating in the secondary market, according to those brokers who spoke with TechCrunch. These individuals stated that Figure AI's legal notices demanded an immediate halt to the marketing of its shares.

Both brokers indicated they received the letters shortly after Bloomberg reported in mid-February that Figure was pursuing a $1.5 billion funding round at a valuation of $39.5 billion—a dramatic fifteen-fold increase from its $2.6 billion valuation in February 2024.

A Figure AI spokesperson told TechCrunch that the company sends such letters when brokers market its stock without authorization, indicating that this is a standard practice.

“This year, upon discovering an unauthorized third-party broker promoting Figure shares without board approval, the company issued a cease and desist order, as it has done previously in similar situations,” the spokesperson said in a written statement. “We prohibit secondary trading of our shares without board authorization and will continue to safeguard the company against unauthorized brokers.”

Because Figure is a private rather than public company, its investors cannot freely sell their shares without company-approved arrangements. This limitation is precisely why secondary markets have emerged, offering investors alternative liquidity options—such as loans secured by their shares—ahead of an IPO.

Brokers who received Figure’s letters shared alternative explanations with TechCrunch regarding why some CEOs disapprove of secondary share sales.

According to these brokers, existing shareholders attempted to sell their stock at prices below the targeted $39.5 billion valuation. Both brokers noted that some companies resist the idea of lower-priced secondary shares competing with a new funding round.

Sim Desai, founder and CEO of the secondary marketplace Hiive, commented to TechCrunch—without referencing Figure specifically—that companies sometimes block secondary sales because they view it as a "zero-sum game."

Desai, however, argues the opposite may be true: an active secondary market could generate more interest in primary share offerings during a new round.

But if secondary trading fails to stimulate primary round interest, the problem may be valuation-related. “If a product is difficult to sell, it often comes down to pricing and valuation rather than a lack of available capital,” Desai noted.

Figure has also recently been featured in several news reports detailing its progress with key customer BMW. In at least one instance, the company responded by claiming the article contained significant inaccuracies and is considering legal action.

The amount Figure AI raises in its next round—and at what valuation—remains uncertain. It is also unclear whether current investors will have early liquidity options through secondary transactions.