Webull’s China Ties Put U.S. Investor Data Under Scrutiny 

A bipartisan House Select Committee investigation released Wednesday, October 7, found that digital brokerage platform Webull’s China ties span its ownership, workforce and technology infrastructure, creating potential legal and surveillance risks for U.S. investors. 

While the report focuses on a stock brokerage, its implications extend to the broader fintech ecosystem. The emphasis on infrastructure and data control applies equally to crypto exchanges, custodians, and digital wallets.

Key Findings of the Congressional Investigation

The House Select Committee on China said Webull’s ownership structure, technical workforce, technology infrastructure, cross-border data practices, financing and compliance systems have significant connections to China.

The committee identified six main areas of concern:

• Data practices
• Location and supervision of key employees
• PRC-linked governance
• Regulatory controls
• Government funding received by Webull’s China-based subsidiary
• Clearing and custody arrangements

Webull’s own SEC filing adds detail. Its mainland China subsidiary, Hunan Weibu Information Technology, employed 863 people at the end of 2025, about 62% of the workforce. 

Furthermore, Founder and CEO Anquan Wang, a China’s citizen, held a 16.4% equity stake while controlling 79.2% of voting power as of March 31. The platform reported 28.2 million registered users, 5.13 million funded accounts, and $28.5 billion in customer assets.

Webull Rebuts Claims as Stock Drops

The congressional investigation argues that Webull’s structure creates exposure to China’s legal and surveillance risks. It does not establish that Chinese authorities have accessed U.S. customers’ brokerage accounts or taken control of their assets.

Webull disputed the committee’s findings, stating the report contains significant inaccuracies and unsupported conclusions.

In its SEC filing, the company says U.S. customer personally identifiable information is stored on servers in the United States and cannot be accessed by non-U.S. employees without permission and oversight from U.S. personnel. It also says its mainland China operations are limited to research and development and technical support.

The committee proposed stronger oversight of foreign-linked broker-dealers and protections for brokerage data involving foreign adversaries. It also floated bringing foreign-controlled broker-dealers under CFIUS jurisdiction.

Following the disclosure, Webull Corp (BULL) shares closed Wednesday down 19.09% at $5.89 after falling up to 32% in premarket trading. On Thursday, BULL declined an additional 3% to close near $5.70. 

Broader Implications for Crypto & Digital Assets

The Webull case shows how foreign ownership, technology dependencies and data jurisdiction can become material risks once lawmakers treat a financial platform as a national-security issue. 

Crypto users, who rely on exchanges, custodians, and wallets, face similar underlying questions about who controls the infrastructure behind their assets.

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