A bipartisan congressional panel said Wednesday that digital investment platform Webull maintains structural ties to the Chinese government, creating national security risks for the United States financial system.
The House Select Committee on China found a significant gap between the St. Petersburg, Florida-based company's public representation and its underlying corporate control.
The committee warned that concerns have escalated since Webull began handling customer cash directly in October 2025, exposing billions of dollars in American capital.
Committee Cites China-Linked Infrastructure and Ownership
According to the report, Webull's software development, backend systems, and data pipelines depend heavily on infrastructure subject to Beijing's strict laws.
Chinese regulations can compel domestic companies to share sensitive data with government intelligence agencies.
Rep. John Moolenaar, R-Mich.
, Chair of the House Select Committee on China, criticized the trading platform's corporate structure and operational reliance on foreign infrastructure.
"Webull's China-based operations put American investors and their data at risk," Moolenaar said.
He added that the platform's reliance on mainland resources creates significant exposure for users.
"Using technology providers in mainland China and an opaque China-linked ownership structure, Webull exposes its data to our foremost adversary," Moolenaar said.
He urged market participants to exercise caution when selecting financial intermediaries.
"Investors should heed this information when choosing who they do business with," Moolenaar said.
Following the release of the congressional report, Webull's stock fell nearly 30% in premarket trading.
The committee also stated that Webull holds $24.6 billion in customer assets and operates under holding companies in the Cayman Islands and Singapore.
Its mainland China subsidiary, Hunan Weibu, employs 863 people, accounting for 62% of its global workforce.
Webull Rejects Findings, Defends US Operations
In response to the allegations, a Webull spokesperson defended the brokerage firm's operational integrity and regulatory compliance.
"It is deeply disappointing that the Select Committee published a report containing significant inaccuracies and unsupported conclusions without ever seeking clarification from Webull," the spokesperson said.
The company emphasized that its main domestic operations remain strictly within the United States.
"Webull's U. S.
business is conducted from its global headquarters in St. Petersburg, Florida and its office in New York City, while U.
S. customer data is stored in the U.
S. and access to sensitive customer data is controlled by the U.
S. ," the spokesperson said.
The firm maintained that it remains open to regulatory review and oversight.
"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.
The report comes as Washington monitors potential vulnerabilities within the financial sector, particularly following a summit between President Donald Trump and Chinese leader Xi Jinping in September ahead of planned follow-up meetings.
