Overview
- A bipartisan House Select Committee released a report on Wednesday that concludes Webull’s ownership, workforce and technology links create structural exposure to the People’s Republic of China and to its intelligence laws, and the news sent Webull shares down about 18 percent in the same trading day.
- The committee says Webull misrepresented its China presence after initially claiming no PRC offices or employees while a mainland subsidiary grew to 863 staffers, roughly 62 percent of the company’s global workforce.
- Investigators found Webull’s core software development, data pipelines and engineering operations depend on infrastructure that the committee says is subject to Beijing’s laws, which can legally compel companies to hand over data or assist intelligence work.
- The panel flagged that risks rose after Webull began carrying customer cash in October 2025, noting the company reported holding about $24.6 billion in customer assets that could be exposed through the firm’s cross-border structure.
- Webull operates through a web of entities in the Cayman Islands, the United States, Singapore and mainland China, and the report’s release increases the likelihood of closer U.S. regulatory scrutiny, investor caution and potential policy responses to limit data or capital exposure.