Overview
- The House Select Committee on China released its report on Wednesday, Oct. 7, concluding Webull’s ownership, workforce, technology and data flows are “tied in structural ways” to the PRC and triggering an immediate roughly 18–20% plunge in Webull’s stock and multiple investor law‑firm probes.
- The committee reported that Webull misrepresented employee locations to lawmakers, while its mainland subsidiary Hunan Weibu grew to 863 employees—about 62% of the company’s global workforce—supporting core software and platform operations in China.
- Lawmakers said national‑security concerns rose after October 2025, when Webull began carrying U.S. customer cash directly, a change the panel says creates a structural exposure of billions of U.S. dollars; the company reported $24.6 billion in customer assets at the end of 2025.
- Investigators outlined a multi‑jurisdictional corporate map—a Cayman Islands holding company, a Singapore technology arm and a China R&D subsidiary—and noted founder Anquan Wang controls roughly 79% of voting power through a dual‑class share structure.
- The committee urged five reforms, including codifying the SEC cross‑border task force, creating foreign‑adversary data protections for brokerage records and bringing foreign‑controlled broker‑dealers under CFIUS jurisdiction, and federal regulators have not announced enforcement action to date.