Webull shares dropped 19.1% on Wednesday, closing at $5.89 per share. The decline followed a report from a House Select Committee on China, which alleged that the trading platform's data could be exposed to Chinese intelligence laws. The committee claims that Webull’s software and core engineering rely on systems subject to Chinese regulations, which may mandate data disclosure to the state.
The report highlights that Webull’s Chinese subsidiary, Hunan Weibu, employs 863 people, representing 62% of the company's total staff. This finding contradicts previous statements from Webull to the committee regarding its lack of personnel in China. Lawmakers first initiated inquiries into these connections in December 2024, noting that concerns intensified after October 2025 when the firm began managing customer cash directly.
Webull rejected the committee's findings, labeling the report as containing significant inaccuracies. The company stated that all US customer data is stored domestically and access is managed within the United States. Furthermore, Webull noted that the committee had not engaged with the firm for over 20 months. The report does not impose any fines, account freezes, or a ban on the application.
The brokerage currently manages $24.6 billion in assets for approximately 28 million global users. According to annual filings, founder Anquan Wang, a Chinese citizen, retains control over 79.2% of the voting rights. While the platform is a member of the Securities Investor Protection Corporation, which covers up to $500,000 per account, this protection does not extend to losses resulting from stock price fluctuations.
