Webull Shares Plunge After House Panel Flags China Ties
Shares of digital investment platform Webull fell to a near-four-month low on Wednesday after a bipartisan congressional report alleged the brokerage is tied in structural ways to the Chinese government. Reuters reported that the stock dropped 19.1% following the release of the findings by the House Select Committee on China, which pointed to a profound gap between the firm’s public marketing as an American company and its actual operational control.
The congressional findings highlight rising scrutiny over foreign links in the U.S. financial sector. The report states that Webull’s ownership architecture, technical workforce, technology infrastructure, cross-border data routing, corporate financing, and compliance frameworks are tethered directly to the People’s Republic of China, according to CNBC. Webull Corp. is incorporated in the Cayman Islands and holds $24.6 billion in customer assets, while maintaining a U.S. base in St. Petersburg, Florida.
Washington Committee Alleges National Security Risks
House Select Committee Chairman John Moolenaar asserted that the brokerage exposes sensitive financial data to foreign adversaries. “Using technology providers in mainland China and an opaque China-linked ownership structure, Webull exposes its data to our foremost adversary,” Moolenaar said in a statement reported by Reuters. The committee stated that its concerns escalated starting in October 2025, when Webull began carrying customer cash directly.
Investigators found that the firm’s mainland China subsidiary, Hunan Weibu, grew to 863 employees, accounting for 62% of the company’s global workforce. The panel warned that critical backend systems and data flows remain exposed to mandatory intelligence laws and coercive demands under Beijing’s legal framework.
Webull Rejects Findings as Unfounded and Inaccurate
Webull strongly disputed the congressional panel’s conclusions in a statement issued to Reuters, calling the publication deeply disappointing. A company spokesperson stated that the report contained significant inaccuracies and unsupported conclusions compiled without ever seeking clarification from Webull during a period where the firm heard nothing from the committee for more than 20 months.
The company defended its data security practices by emphasizing that U.S. customer data is stored domestically and that access to sensitive information is controlled within the United States. “We remain prepared to address any questions directly and with the same transparency we bring to the SEC, FINRA, and regulators worldwide,” the spokesperson said, as reported by CNBC.
Stock Drops as U.S. Revenue Dominates Business
The selloff put the stock on track for its steepest single-day decline in more than a year, trading near levels last seen in April. TIKR.com noted that approximately 90% of Webull’s 2025 revenue—totaling $516.5 million out of $571 million—originated from U.S. customers, leaving the core business highly sensitive to potential regulatory developments.
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