A new report from the House Select Committee on China, shared with CNBC, says there is a sharp disconnect between Webull's marketing as an American broker and who has leverage over the St. Petersburg, Florida-based company. The committee concluded that Webull's "ownership architecture, technical workforce, technology infrastructure, cross-border data routing, corporate financing, and compliance frameworks are tied in structural ways to the People's Republic of China."
According to the panel, worries grew in October 2025 when a regulatory filing indicated that Webull had started to hold customer cash on its own - a change the committee claims results in a "structural exposure of billions of dollars in American capital." It adds that Webull's setup leaves "software development, data pipelines, and core engineering operations" dependent on infrastructure under Beijing's laws, which can require companies to cooperate with the government, including with data transfers.
The timing lands amid wider Capitol Hill worries that Beijing could plant weaknesses in the U.S. financial system that could be used to disrupt the economy if tensions worsen.
The report describes Webull Corp. as a Cayman Islands-incorporated holding company that holds $24.6 billion in customer assets. The report notes that, even though there is a U.S. holding entity called Webull Holdings (US) Inc., its architecture also relies on Webull Technologies Pte. Ltd. in Singapore.
According to the report, Webull relies on a subsidiary in mainland China to handle technology development and keep the platform running. The business traces its roots to Hunan Fumi Information Technology Co., Ltd., which originally launched it.
According to the committee, Webull Financial's "intricate corporate and technology framework" is directly tied to China, and "critical backend systems, personnel and data flows may remain exposed to the Chinese Communist Party's mandatory intelligence laws and coercive demands."
The report also says Webull misrepresented its China-based headcount. The document records that, at first, the company told the committee it "does not have any offices or employees based in the PRC," and that "all Firm employees are located in the United States." The committee says operations remain centered in China, citing its mainland subsidiary, Hunan Weibu, which it says has grown to 863 employees, or 62% of Webull's global workforce. In 2024, the panel asked the company for information.
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Webull's shares fell 18% in morning trading after the report. A quote snapshot showed the stock at 5.82, down 1.46 or 20.12%, as of 11:27 AM EDT. Rep. John Moolenaar, R-Mich., who chairs the committee, told CNBC 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," and said, "Investors should heed this information when choosing who they do business with."
Webull pushed back. A 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 added, "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 said it stands ready to respond to inquiries with the same transparency it offers the SEC, FINRA, and regulators worldwide.
Webull holds a Nasdaq listing. The firm says it maintains a worldwide set of regulated brokerage entities, serves 18 markets, and provides around-the-clock connectivity to global financial markets. The company says its clients may trade global stocks and ETFs, along with options and futures contracts, fractional shares, and digital-asset products.
Webull counts 28 million users worldwide. The firm was founded in 2016 by Wang Anquan, a former Alibaba and Xiaomi manager. Rivals include Robinhood, Charles Schwab, and E-Trade.
This report comes after a largely cordial September sit-down involving President Donald Trump and Xi Jinping, China's leader, and more meetings are expected later this year. For your portfolio, the takeaway is basic but important: who owns your brokerage, where its engineers and servers sit, and which laws touch your data can matter a lot, especially when billions in customer cash are part of the story.
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