The House Select Committee on China has concluded that digital investment platform Webull maintains “structural ties” to the Chinese government that pose national security risks to the United States financial system, according to findings released Wednesday.
CNBC reports that the House Select Committee on China issued a report detailing what it describes as significant connections between the trading platform Webull and China’s government, creating what lawmakers characterize as a national security threat. The company’s stock dropped 18 percent in morning trading following the report’s release, which was shared exclusively with CNBC.
Webull, which operates from St. Petersburg, Florida, and serves 28 million global users worldwide, has been marketing itself as an American company. However, the congressional investigation found what it calls a profound gap between this public image and the actual control structure of the firm.
According to the committee’s findings, multiple aspects of Webull’s operations maintain structural connections to China. These include the company’s ownership architecture, technical workforce, technology infrastructure, cross-border data routing systems, corporate financing arrangements, and compliance frameworks.
The report highlights that national security concerns have intensified since October 2025, when Webull began directly holding customer cash according to regulatory filings. The committee asserts this development creates structural exposure involving billions of dollars in American capital.
The congressional panel expressed particular concern about the company’s corporate structure, stating that Webull’s software development, data pipelines, and core engineering operations depend on infrastructure subject to Chinese law. Under these laws, Chinese authorities can compel companies to cooperate with the government in various ways, including mandatory data transfers.
Rep. John Moolenaar (R-MI), who chairs the House committee, stated that Webull’s “China-based operations put American investors and their data at risk.” He added, “Using technology providers in mainland China and an opaque China-linked ownership structure, Webull exposes its data to our foremost adversary. Investors should heed this information when choosing who they do business with.”
Webull strongly disputed the congressional findings. A company spokesperson said, “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 emphasized that “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 company stated it remains prepared to address questions with transparency similar to its interactions with the SEC, FINRA, and regulators worldwide.
The congressional investigation, which began after the committee requested information from the company in 2024, concluded that Webull represents a national security risk because critical backend systems, personnel, and data flows may remain exposed to what it describes as the Chinese Communist Party’s mandatory intelligence laws and coercive demands.
The committee also alleged discrepancies in how Webull represented its workforce. According to the report, the company initially told the committee it does not have offices or employees based in China and that all firm employees are located in the United States. However, the committee claims the firm remains operationally concentrated in China, with its mainland subsidiary, Hunan Weibu, employing 863 people, representing 62 percent of the company’s global workforce.
Webull, which trades on the Nasdaq stock exchange, operates what it describes as a global network of licensed brokerages offering investment services in 18 markets. The platform provides retail and institutional investors with around-the-clock access to global financial markets, allowing users to trade stocks, exchange-traded funds, options, futures, fractional shares, and digital assets.
Webull shares closed down 19 percent based on the Congressional report. National shareholder rights law firm Schall, Brown & Schwartz has announced an investigation of the company on behalf of investors who have lost money.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of AI, free speech, and online censorship.