Webull Faces Scrutiny Over Alleged Ties to Chinese Government

Trading app Webull is facing national security concerns due to alleged "ties in structural ways" to the Chinese government, according to findings reported by US lawmakers. Shares of the platform, which serves 28 million users globally, fell 18% following reports that a House Select Committee on China identified a "profound gap" between Webull's portrayal of itself as an American company and its adherence to Beijing's laws.

The committee's report indicates that Webull's "critical backend systems, personnel and data flows may remain exposed to the Chinese Communist Party’s mandatory intelligence laws and coercive demands." These concerns have reportedly escalated since October 2025, when Webull began holding customer cash directly, potentially exposing billions of dollars in American capital.

Webull, which holds $24.6 billion in customer assets, was founded in 2016 by Wang Anquan, a former executive at the China-based e-commerce giant Alibaba. The company, incorporated in the Cayman Islands, operates a US holding company, Webull Holdings (US) Inc., but also maintains a technology branch in Singapore and a subsidiary in mainland China.

In response to the report, a spokesperson for Webull defended the company, stating that its global headquarters are in St. Petersburg, Florida, with an office in New York City. The spokesperson asserted that US customer data is stored domestically and expressed disappointment over the committee's report, which they claim contains "significant inaccuracies and unsupported conclusions." Webull stated it is prepared to address any questions with transparency, similar to its interactions with the SEC, FINRA, and international regulators.

The scrutiny follows a probe launched in 2024 by a group of Republican attorneys general into the company's connections to China's mainland and its ruling Communist Party.