A recent investigation conducted by the “Congressional Committee on the Chinese Communist Party” and exclusively disclosed to CNBC has revealed that the digital investment platform Webull, with 28 million users globally, has undisclosed ties to the Chinese government at a structural level, posing a threat to US financial security.
According to the new report by the Congressional committee, Webull, which claims to be an “American company,” has significant discrepancies between this claim and its actual ownership structure.
The committee found that Webull’s ownership structure, technical personnel deployment, technical infrastructure, cross-border data transmission, corporate financing, and compliance framework all have connections at a structural level with the People’s Republic of China (PRC). The report points out that Webull utilizes a subsidiary located in mainland China to support technical development and platform operation.
Since Webull began directly safeguarding customer cash in October 2025, concerns regarding national security related to Webull have escalated, putting billions of dollars of US funds at structural risk.
The committee also noted that Webull’s corporate structure implies that its “software development, data transmission processes, and core engineering operations” rely on infrastructure governed directly by Chinese laws. The committee highlighted that Chinese laws could compel companies to cooperate with the Chinese government in various ways, including data transmission.
Webull has objected to the report, with a company spokesperson stating, “It is disappointing that the committee released a report without seeking clarification from Webull, which includes numerous inaccurate and unsubstantiated conclusions.”
Through an email to CNBC, the spokesperson further clarified, “Webull’s US operations are managed by its global headquarters in St. Petersburg, Florida, and its offices in New York City. Customer data for US users is stored within the US, and access to sensitive customer data is controlled by US entities.”
The spokesperson also mentioned that Webull is prepared to directly address any questions.
On Wednesday, October 7th, the company’s stock price plummeted by 18% in early trading.
Chairman of the “Congressional Committee on the Chinese Communist Party,” John Moolenaar, conveyed in a statement to CNBC that Webull’s operations in China put US investors and their data at risk.
“By using technical suppliers from mainland China and an opaque ownership structure linked to China, Webull has exposed its data to our top adversary,” Moolenaar stated. “Investors should consider this information carefully when choosing business partners.”
Webull was founded in 2016 by former Alibaba and Xiaomi executive Wang Anquan. In 2024, the committee sought information from Webull and indicated that Webull posed a national security risk due to potential influence from mandatory intelligence laws under the Chinese government.
In December 2024, Chairman Moolenaar and senior Democrat Raja Krishnamoorthi wrote to Webull’s CEO Anthony Denier, explicitly noting that the company’s association with the People’s Republic of China might pose risks to the data security of American users.
“We note that Webull maintains close connections with entities located within the PRC through its ownership and operational structure and associations with entities and individuals believed to advance the interests of the Chinese Communist Party,” the two lawmakers stated in their letter. “The ongoing business relationships of Webull with the PRC and its reliance on technologies and personnel associated with the Chinese Communist Party raise serious questions about the security of American user data and also raise doubts as to Webull’s willingness and ability to comply with regulatory standards governing information transparency and fair trading in the United States, thereby sparking concerns among external parties about the potential risks Webull may pose to the US financial market.”
The national security risks posed by Webull have long drawn the attention of the US Congress. In a congressional hearing in 2021, former Congressman Lee Zeldin questioned Webull’s ties with the Chinese Communist Party; in July 2022, five federal senators wrote to the SEC requesting an investigation into the potential exposure of Americans’ financial data to the Chinese government through Webull and Moomoo under Futu Holdings; in July 2023, Congressman Mike Lawler wrote to then-Treasury Secretary Janet Yellen, urging the Committee on Foreign Investment in the United States (CFIUS) to investigate the risks posed by Webull and Moomoo in exposing Americans’ financial data to China.