Figure Lending Confirms Major Data Breach After ShinyHunters Leaks 2.5GB of Customer Data

Blockchain-based lending platform Figure Technologies has confirmed a major cybersecurity breach after the notorious ShinyHunters hacking group published 2.5GB of company data on Friday. The leak occurred after Figure refused to pay an undisclosed ransom demand, according to statements attributed to the threat actors. This incident marks one of the largest publicly disclosed breaches in the blockchain lending sector this year.

The compromised data reportedly includes sensitive customer information, internal financial documents, and proprietary lending algorithms. While Figure acknowledged the breach through a spokesperson, the company has not disclosed specific details about the nature of compromised records or the number of affected customers. ShinyHunters, a hacking collective responsible for high-profile attacks on Microsoft, AT&T, and over 60 other organizations since 2020, announced the leak on dark web forums alongside claims that Figure ignored their extortion attempts.

This breach occurs amid rapid expansion in blockchain-based financial services, where security protocols face heightened scrutiny. Figure Technologies, valued at $3.2 billion following its latest funding round, originated over $1.5 billion in loans during Q4 2025 using its proprietary blockchain infrastructure. The company's refusal to pay ransom aligns with FBI recommendations but exposes critical vulnerabilities in decentralized finance (DeFi) platforms handling sensitive financial data.

Security analysts note several strategic implications:

1. Ransomware Economics: ShinyHunters' public data dump demonstrates escalating retaliation tactics when ransom demands are refused. Cybersecurity firm CrowdStrike estimates that 43% of financial services firms faced ransomware attacks in 2025, with average demands exceeding $2.3 million.
2. Blockchain Vulnerability Paradox: While blockchain's immutable ledger enhances transaction security, centralized data storage points remain susceptible. The breach contradicts common perceptions of inherent blockchain security, highlighting persistent risks in auxiliary systems managing personally identifiable information.
3. Regulatory Exposure: Figure now faces potential investigations under SEC cybersecurity disclosure rules and California's Consumer Privacy Act. Financial regulators have levied over $500 million in fines against fintech firms for inadequate data protection since 2023.
4. Market Confidence Impact: Blockchain lending platforms reported $28 billion in originated loans last quarter. Breaches of this magnitude risk undermining institutional adoption, particularly as traditional finance institutions increase DeFi allocations.

Figure stated it has engaged cybersecurity forensics firms and law enforcement. The company faces critical challenges in mitigating customer harm while preventing erosion of trust in blockchain-based lending systems. As financial services increasingly migrate to decentralized architectures, this incident underscores the non-negotiable requirement for military-grade encryption, zero-trust frameworks, and comprehensive incident response planning across all data touchpoints.