- Webull shares dropped over 20% in morning trading on Nasdaq
- US congressional panel accused Webull of deep structural ties to China
- Concerns raised about national security risks from Webull's China links
Webull shares plunged more than 20% in morning trading on Wednesday after a bipartisan US congressional panel accused the online brokerage of having deep structural ties to China and warned that the links could pose national security risks.
At 11:56 a.m. EDT, Webull Corp shares were down $1.47, or 20.23%, at $5.81 on Nasdaq. The stock had earlier fallen as much as 20.67%, trading at $5.78.
According to CNBC, the House Select Committee on China said Webull's ownership structure, technology infrastructure, workforce, data routing, corporate financing and compliance systems remain closely connected to China.
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The committee said there was a profound gap between Webull's public positioning as an American company and the actual structure and control of its operations.
“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,” the committee said in its report released Wednesday.
The panel said its national security concerns had escalated since October 2025, when Webull began carrying customer cash directly. It said the move created a “structural exposure of billions of dollars in American capital”.
The committee also alleged that Webull's software development, data pipelines and core engineering operations rely on infrastructure subject to Chinese laws, which can require companies to cooperate with the government, including through data transfers.
Webull rejected the findings, saying the report contained significant inaccuracies and unsupported conclusions.
“It is deeply disappointing that the Select Committee published a report containing significant inaccuracies and unsupported conclusions without ever seeking clarification from Webull,” a company spokesperson told CNBC.
“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 spokesperson said.
The company added that it remained prepared to address questions directly with US regulators.
Committee Chairman Rep. John Moolenaar said Webull's China-based operations could put American investors and their data at risk.
“Using technology providers in mainland China and an opaque China-linked ownership structure, Webull exposes its data to our foremost adversary,” Moolenaar said, according to CNBC.
The report said Webull traces its origins to Hunan Fumi Information Technology Co. Ltd., a Chinese company that launched the business. Webull Corp is incorporated in the Cayman Islands and holds $24.6 billion in customer assets, according to the committee.
The panel also alleged that Webull had understated its China-based workforce. It said the company initially told the committee in response to inquiries that it had no offices or employees in China. However, the committee said its mainland subsidiary, Hunan Weibu, had grown to 863 employees, representing 62% of Webull's global workforce.
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