A bipartisan US House panel has described Webull’s ties to China as a national security risk. The findings come from a report reviewed by CNBC ahead of its expected publication later today.
The document was not publicly available at the time of writing.
The House Select Committee on the Chinese Communist Party began examining Webull in December 2024, requesting information about the company’s Chinese developers, ownership structure and safeguards for American customer data.
Report Focuses on Ownership and Technology
According to CNBC, the committee’s concerns include the influence of Webull founder and CEO Anquan Wang and the company’s ongoing technical operations in mainland China.
Webull’s latest annual report said Wang beneficially owned 16.4% of its outstanding shares but controlled 79.2% of its voting power as of 31 March 2026 through the company’s dual-class share structure.
The same regulatory filing said Webull’s mainland Chinese subsidiary employed 863 people at the end of 2025, representing 62% of its global workforce. The subsidiary provides research, development and technical support.
The committee reportedly argues that Webull’s ownership, engineering operations and technology infrastructure remain structurally connected to China.
However, the material reported so far does not establish that Chinese authorities obtained Webull customer information or that customer data was compromised.
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Webull Now Carries Customer Cash
Separate from the committee’s findings, Webull has assumed greater responsibility for US customer accounts since the inquiry began.
The broker completed its transition to an omnibus clearing arrangement with Apex Clearing in October 2025. Under the previous fully disclosed model, individual accounts were introduced to and carried by Apex.
Customer cash is now deposited with and carried directly by Webull, while Apex continues to clear and settle securities transactions and custody customer securities. The change places Webull between individual customers and Apex for cash accounting and other account functions.
Webull reported $24.6 billion in total customer assets at the end of 2025. That figure includes securities held in custody by Apex and should not be interpreted as the amount of cash carried directly by Webull.
Webull shares fell nearly 30% in early trading before recovering part of the loss. At 11:03 a.m. EDT, the stock was down 21.1% at $5.75, with trading volume approaching 28 million shares.
Webull Says US Data Remains in the US
Webull has maintained that personally identifiable information belonging to its US brokerage customers is stored on servers in the United States. Its annual report says overseas employees cannot access or transmit that information without permission and oversight from US personnel.
The company has previously described allegations about its connections to China as based on outdated or inaccurate information. The publicly reported findings do not indicate whether Webull provided a new response for inclusion in the committee’s report.
The report itself would not impose restrictions on Webull or establish that customer assets or information have been compromised. Its publication is expected to clarify whether the committee is seeking action from financial regulators or other government agencies.
