Concerns Raised About Webull’s Ties to Chinese Government
The House Select Committee on China has determined that the digital investment platform Webull has “structural ties” to the Chinese government, which could pose risks to national security in the United States financial system, according to a report released recently.
CNBC reported that the committee released findings detailing significant connections between Webull and the Chinese government, labeling these ties as a potential national security threat. Following the report, the company’s stock plummeted by 18 percent during morning trading.
Webull, based in St. Petersburg, Florida, claims to cater to a global audience of 28 million users. Despite marketing itself as an American entity, the congressional investigation highlighted a significant disconnect between this public persona and the company’s actual control mechanisms.
The committee’s investigation revealed that various operational aspects of Webull maintain connections to China. These include the company’s ownership structure, technical workforce, technology systems, cross-border data routing processes, corporate financing methods, and compliance systems.
Concerns about national security have reportedly intensified since October 2025, particularly when Webull started directly holding customer cash. The committee asserts that this situation creates a structural risk involving billions of dollars from American investors.
Lawmakers expressed particular concern regarding how Webull’s corporate structure operates under Chinese law. The committee noted that the company’s software development, data pipelines, and essential engineering tasks rely on infrastructures that could require compliance with Chinese government requests, including mandatory data transfers.
Rep. John Moolenaar, the committee chair, remarked that Webull’s operations are putting American investors and their data in jeopardy. He indicated that utilizing technology providers in China, combined with a confusing ownership structure, means that Webull could expose sensitive data to a significant adversary. “Investors should consider this information when selecting their business partners,” he advised.
In response, Webull strongly contested the committee’s conclusions. A spokesperson expressed disappointment at the report’s inaccuracies and claims of unsupported conclusions, stressing that Webull’s U.S. operations are entirely based in St. Petersburg and New York City, with American customer data stored domestically and access regulated by U.S. standards. The company expressed its willingness to engage with regulatory bodies like the SEC and FINRA with transparency.
The congressional inquiry, initiated after the committee sought information from Webull in 2024, determined that the company represents a national security concern due to the potential exposure of critical backend systems and data to the Chinese Communist Party’s intelligence laws.
Additionally, the report suggested inconsistencies in Webull’s representations about its workforce. Initially, the company claimed it did not have offices or employees in China and that all staff worked within the U.S. Nonetheless, the committee reported that a subsidiary, Hunan Weibu, employs 863 individuals, which comprises 62 percent of Webull’s global workforce.
Webull, listed on the Nasdaq stock exchange, functions as a network of licensed brokerages providing investment services across 18 markets. The platform allows both retail and institutional investors to engage with global financial markets 24/7, offering trading in stocks, exchange-traded funds, options, futures, fractional shares, and digital assets.
As a consequence of the congressional report, Webull shares closed down by 19 percent. A national shareholder rights law firm has also announced an investigation into Webull on behalf of investors who have reportedly suffered financial losses.
