A U.S. Congressional committee has labeled Webull's ties to China a threat to national security
Webull shares plummeted 30% in pre-market trading in New York
Webull describes itself as an American company, but a U.S. congressional committee has uncovered the broker's ties to China / Photo: X / Webull
The Webull trading platform, which has 28 million users worldwide, is linked to the Chinese government, posing a threat to U.S. national security in the financial sector. This is the conclusion reached by the House of Representatives’ bipartisan Special Committee on China, according to CNBC, which obtained the report exclusively.
The committee found a “significant discrepancy” between Webull’s positioning as an “American company” and who actually controls the brokerage. Webull did not promptly respond to CNBC’s request for comment. According to Webull, as of the end of June 2026, assets in client accounts totaled $28.5 billion.
Webull shares were down 30% in morning trading in New York at the time this news was published.
What risks does the committee see?
The company's software development, data processing, and key engineering processes depend on infrastructure that is subject to Chinese law, the report states. These laws, among other things, allow authorities to require companies to hand over data.
"Webull's ownership structure, its technical staff, technological infrastructure, cross-border data routing, corporate financing, and regulatory compliance mechanisms are structurally linked to the PRC," CNBC quotes the committee's report as saying.
Concerns intensified after Webull began directly holding client funds in October 2025, the committee asserts, citing a document filed with the regulator. In its assessment, this business model puts billions of dollars belonging to U.S. investors at risk.
The committee also accused Webull of providing inaccurate information about its employees in China. It claims that the company initially reported that it had no offices or employees in the PRC and that its entire workforce was based in the United States. However, as the report states, the workforce of its subsidiary, Hunan Weibu, in mainland China has grown to 863 people—accounting for 62% of the group’s global workforce.
"Webull's operations in China put U.S. investors and their data at risk," committee chairman John Moulenaar, a Republican, told CNBC. He urged investors to take this information into account when choosing a financial firm.
What Is Known About Webull
Webull was founded in 2016 by Wang Anquan, a former manager at Alibaba and Xiaomi. The company has been listed on the Nasdaq since April 2025; its competitors include Robinhood, Charles Schwab, and E-Trade. According to the broker itself, its platform allows users to trade stocks, ETFs, options, futures, and digital assets across 18 markets.
The Webull holding company is registered in the Cayman Islands. According to the company’s report, the group’s structure also includes a U.S. holding company, a technology company in Singapore, and a subsidiary in mainland China that handles technology development and platform operations.
The committee had requested information from Webull about its ties to the PRC as early as 2024.
