Webull fell as much as 32% in premarket trading on Wednesday after a bipartisan US House committee said the brokerage poses a national security risk because of what it called structural ties to China.
The company, a Robinhood rival with 28 million registered users, offers trading in traditional stocks and derivatives as well as crypto and prediction markets. According to the US House of Representatives’ Select Committee on China, there is a "profound gap" between Webull’s marketing as "an American company" and the parties that actually fund and influence it. The committee said Webull’s ownership, workforce, technology, data flows, financing, and compliance are all tied to China in "structural ways."
Committee report points to mainland staff and Chinese entities
As part of its investigation, the committee said Webull initially told lawmakers that it "does not have any offices or employees based in the People’s Republic of China." The report said that claim clashes with the current footprint of Hunan Weibu, Webull’s mainland unit, which now employs 863 people, equal to 62% of the company’s global headcount.
Lawmakers John Moolenaar and Raja Krishnamoorthi wrote to Webull CEO Anthony Denier in December 2024 about two Chinese companies: Fumi Technology, which established the business, and Hunan Weibu, which they said received grants from the Changsha Municipal Government in Hunan province.
According to the two congressmen, recipients of a Changsha municipal special fund must "support the leadership of the Chinese Communist Party," which they said showed "direct influence exerted by the CCP over Hunan Weibu — and by extension, Webull."
Stock and valuation have dropped sharply since the Nasdaq debut
Webull went public on Nasdaq through a merger with a blank-check company at a $7.3 billion valuation. Its market capitalization rose above $32 billion on April 14, 2025. It is now $4.1 billion, according to the report.
The stock hit an all-time high of $79.56 on April 14, 2025, one trading session after its Nasdaq debut. With shares trading below $5.80 today, shareholders are down 92% from that peak.
Webull rejects the findings; panel raises concern over customer assets
Webull rejected the committee’s conclusions. 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 company added that it runs its US business from Florida and New York. It also said American customer data remains on US soil.
The committee said the issue goes beyond Webull’s brand value or share price. In October 2025, Webull accepted custody of customer money. The panel alleged that the move created a "structural exposure of billions of dollars in American capital," putting $24.6 billion at issue.
Insider sale came less than 48 hours before the report
Anthony Denier, Webull’s president, sold 53,846 shares on Monday, less than 48 hours before the report was published. The article said the timing looked unfortunate, though the sale was made under a trading plan he adopted in May.
It also said insider transactions in Webull have been entirely skewed to selling this year, with no insider purchases year to date.
CNBC wrote on X: "Trading platform Webull's China ties create national security risk, congressional panel finds."
Webull continues to dispute the report’s core claims, but the market reaction was immediate.