AI Powerhouse Sends Cease‑and‑Desist Letters to Secondary Market Brokers

Figure AI’s Stock Wars: From “ Hot!” to “Stop the Show!”

Last month, Brett Adcock, the founder of robotics startup Figure AI, bragged on X that his company is now the #1 most sought‑after private stock in the secondary market. Pretty slick, right? But the drama didn’t stop there.

Why the Buzz Turns into a Brawl

• Cease‑and‑desist letters sent to at least two secondary‑market brokers.
• Both brokers claim they received the letters after a Bloomberg report in mid‑February that Figure was chasing a $1.5 billion round with a whopping $39.5 billion valuation.
• The valuation jump? A fifteen‑fold leap from the $2.6 billion figure it hit in February 2024.
• In the letters, Figure demanded that these brokers stop marketing the company’s stock without proper approval.

Figure’s “Over‑the‑Top” Defense

The company’s spokesperson clarified that these letters are a regular move whenever a broker is not authorized to sell the stock. “We’ve always sent letters to keep unauthorized parties in check,” the spokesperson told TechCrunch.

Key takeaways:

• Figure AI does not allow secondary market trading without board approval.
• When an unauthorized third‑party broker tried to push shares, Figure pulled out a cease‑and‑desist.
• They plan to keep protecting themselves against any unwanted brokers in the market.

Why Private Stocks Can’t Just Go On Sale Anytime

Figure AI is a private company, meaning its shares aren’t freely tradable like a public company’s. Investors, wishing to cash out before an IPO, often turn to:

• Secondary markets that provide liquidity.
• Share‑secured loans that can be repaid once the company goes public.

But these avenues also attract “unauthorized” brokers, which is why Figure is so quick to send cease‑and‑desist letters.

Other Brokers’ Perspectives

While Figure argued it protects its interests, the brokers on the receiving end offered different theories about why CEOs might resist share sales on their platforms. Though we didn’t get the full scoop, one thing’s clear: the world of private stock trading is as tricky as it is exciting.

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Netflix, ElevenLabs, Wayve, Sequoia Capital — just a few of the heavy hitters joining the Disrupt 2025 agenda. They’re here to deliver the insights that fuel startup growth and sharpen your edge. Don’t miss the 20th anniversary of TechCrunch Disrupt, and a chance to learn from the top voices in tech — grab your ticket now and save up to $675 before prices rise.

Figure’s Pricing Roller‑Coaster: Why Secondary Shareholders Are Upset

Picture a big tech startup, Figure AI, hunting for heavy hitters like BMW. The big payday it’s hoping for is a $39.5 billion valuation—wow, that’s the size of a small country!

Why Some Shareholders Are Taking a Break

• Existing investors are trying to sell their shares at a price that’s well below the sweet spot.
• They’re worried that dribbling cash out at lower prices might kill the hype for the next fundraise.
• Different brokers warn a lot of companies would feel threatened by cheaper secondary shares.

Enter Sim Desai – The “Zero‑Sum Game” Philosopher

Sim Desai, CEO of Hiive, one of the world’s most popular secondary‑share marketplaces, chimes in with a huge dose of “oh‑they‑don’t‑like‑this” attitude.

“Companies block direct secondary sales because they think it’s a zero‑sum game,” Desai said. In other words, selling shares at a discount might steal value from a fresh round.

The Flip‑Side of Secondary Trading

Desai flips the script: he thinks active secondary markets could be a magnet for future investors. If people are buying and selling shares around the block, that’s a sign the company is alive and making people excited.

What Happens If the Secondary Market Doesn’t Ignite the Primary Fundraise?

Desai’s got a neat theory. When the second order fails to create interest in the primary round, the real culprit is usually a valuation problem. “If someone can’t sell, it’s a pricing issue, not a money issue.” That’s the full story.

Figure AI’s Recent Media Slam‑down

There’s been a media rainbow of buzz stories—most praising Figure’s partnerships with big names like BMW. Yet the headlines were so full of untruths that Figure’s team is threatening to sue for defamation.

Future Moves – What We Know and What We Don’t

• Exact next valuation? Nobody knows.
• How much cash investors will pull out early through secondary transactions? We’re still waiting for the answer.
• One thing’s clear: if the market keeps moving sideways like a winter drive on a slippery road, Figure will need a new strategy.

Everyone stays tuned. The future is still a bit fuzzy, but hey—life in finance is all about taking a leap of faith.