Figure AI, a robotics startup, has issued cease-and-desist letters to at least two secondary market brokers. These brokers were marketing Figure AI’s stock without authorization.
The letters were sent in February 2025, following reports of Figure AI seeking $1.5 billion funding at a $39.5 billion valuation. This event highlights challenges private companies face in controlling unauthorized trading on secondary markets, which can affect valuation and fundraising.
Who Is Involved and Why It Matters
Brett Adcock, founder of Figure AI, recently stated that the company’s shares are highly sought-after in the secondary market. The brokers receiving the cease-and-desist letters operate in the United States, where Figure AI is also based.
Unauthorized trading can undermine company valuations, especially when secondary market prices differ from primary funding rounds. Figure AI emphasized it prohibits secondary market sales without approval from its board.
Background and Company Growth
Figure AI’s valuation rose from $2.6 billion in February 2024 to a proposed $39.5 billion in February 2025, a 15-fold increase. This rapid growth has drawn attention in both funding and secondary trading circles.
| Valuation Date | Valuation | Increase |
|---|---|---|
| February 2024 | $2.6 billion | Baseline |
| February 2025 | $39.5 billion (proposed) | 15x rise |
How the Situation Unfolded
After discovering unauthorized brokers marketing its shares, Figure AI sent formal cease-and-desist letters demanding they stop. A company spokesperson confirmed that Figure AI has a history of such actions to protect itself.
Figure AI stated it “does not allow secondary market trading in its shares without board authorization and will continue to protect itself against unauthorized brokers.” This policy reflects how private firms manage stock liquidity and control.
Industry Insight
Secondary markets allow some investors to access cash from shares before an IPO, sometimes through loans secured by startup shares. But some CEOs may oppose these trades if prices are below new funding valuations.
Hiive CEO Sim Desai explained companies sometimes block secondary sales, seeing it as a “zero-sum game.” Desai argues active secondary markets might even boost interest in primary rounds.
Figure AI has also addressed media inaccuracies regarding its progress with clients like BMW, reportedly threatening legal action to correct statements.
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