Webull’s Links to the Chinese Government Raise Concerns
Webull, a digital brokerage platform, has come under scrutiny for its connections to the Chinese government, which some U.S. lawmakers believe could pose a national security risk to the country’s financial system.
Following a CNBC report, shares of Webull—similar to Robinhood, with around 28 million users worldwide—dropped by 18%. The House Select Committee on China indicated that data operations of Webull “may remain exposed to the Chinese Communist Party’s” requests.
The committee’s report highlighted a significant discrepancy between Webull’s self-presentation as “an American company” in St. Petersburg, Florida, and its adherence to regulations imposed by Beijing.
A Webull spokesperson defended the company’s practices, emphasizing that it operates from St. Petersburg and has an office in New York City, assuring that U.S. customer data is stored domestically.
“It’s certainly disappointing that the Select Committee published a report with inaccuracies and unfounded conclusions, especially without clarifying with us,” the spokesperson stated. “We are always ready to address any questions transparently, as we do with the SEC, FINRA, and other global regulators.”
Back in 2024, a group of Republican attorneys general initiated an investigation into Webull’s connections to mainland China and its Communist Party. The committee’s concerns have evidently intensified since October 2025, when Webull began to handle customer cash directly, potentially endangering billions of dollars in American investments, as reported by CNBC.
Founded in 2016 by Wang Anquan, a former executive at Alibaba, Webull manages $24.6 billion in customer assets. The platform competes with other digital investment services such as Robinhood and Charles Schwab, offering users the ability to trade stocks, ETFs, options, futures, and digital assets.
However, the committee warned that Webull’s essential backend systems, personnel, and data transfers might still be vulnerable to the mandatory intelligence laws and coercive demands from the Chinese Communist Party.
It’s important to note that Webull Corp. is incorporated in the Cayman Islands, and while it has a U.S. holding company named Webull Holdings (US) Inc., it also maintains a technology branch in Singapore and a subsidiary in mainland China, according to CNBC.
