Congressional Panel Says Webull Is a National Security Risk – Shares Plunge

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A Sharp Sell-Off on Wall Street

Webull shares fell more than 20 percent to $5.78 on Wednesday morning after a congressional report raised national security concerns. The stock was on track for its steepest one-day decline in more than a year.

The report came from the House Select Committee on China, which is led by Republican Rep. John Moolenaar of Michigan. The committee says Webull holds $24.6 billion in customer assets. The company claims 28 million users in 18 countries.

What the Committee Found

The panel says Webull presents itself as an American company, but its ownership, technical staff, technology systems, cross-border data flows, financing and regulatory compliance all show deep connections to the People's Republic of China. The committee describes a "profound gap" between the marketing and the reality.

A key concern is where the work gets done. According to the report, Webull relies on a subsidiary in mainland China to build its technology and keep the platform running. Companies based in China must follow Beijing's laws, which can include handing data to the authorities (the committee's concern, not a proven case at Webull).

The Dispute Over Employee Numbers

One of the sharpest allegations concerns staffing. Webull reportedly told the committee it had no offices or employees in China. The committee says its mainland subsidiary, Hunan Weibu, employs 863 people, about 62 percent of the global workforce.

The committee further charged that Webull gave misleading information about how many people it employs in China. Webull disputes the committee's claims.

Chairman: "Investors Should Take Note"

Moolenaar said the company's use of technology providers in mainland China and an opaque China-linked ownership structure exposes its data to America's "foremost adversary." He urged investors to weigh this information when choosing a broker.

Background: Years of Scrutiny

The report did not come out of nowhere. Moolenaar and the committee's top Democrat, Raja Krishnamoorthi, wrote to Webull's CEO in 2024. They alleged that Webull shared employees and technology with Chinese companies and benefited from grants from the Chinese Communist Party that flowed through its Chinese sister company.

Webull's roots lie in China. It was founded in 2016 under the Chinese firm Hunan Fumi Information Technology. Indiana's attorney general also led a multistate inquiry into whether customer data could be exposed to the Chinese Communist Party.

What Comes Next

Investors now face uncertainty. An analyst at Siebert Financial suspended his buy rating, saying the regulatory and operational consequences are too unclear to estimate.

The report also lands at a politically sensitive moment. It follows a largely cordial September meeting between President Donald Trump and Xi Jinping, with more talks expected later this year. The case shows that Washington's concern about Chinese influence in the US economy, including financial services, continues across party lines.

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Sources

1. Quartz – "Congressional panel says Webull's China ties pose a national security risk": https://qz.com/webull-china-national-security-house-select-committee-100726
2. Benzinga – "Webull Stock Falls After House Panel Calls Its China Ties a National Security Risk": https://www.benzinga.com/trading-ideas/movers/26/10/62215261/webull-stock-falls-after-house-panel-calls-its-china-ties-a-national-security-risk
3. Yahoo Finance/Proactive – "Webull shares plunge more than 20% after congressional report flags China ties": https://finance.yahoo.com/markets/stocks/articles/webull-shares-plunge-more-20-142300812.html
4. Breitbart – "House Committee on China: Investment Platform Webull's Connections to CCP Put Americans at Risk": https://www.breitbart.com/tech/2026/10/07/house-committee-on-china-investment-platform-webulls-connections-to-ccp-put-americans-at-risk/
5. House Select Committee on China (official) – Letter to Webull CEO, 2024: https://chinaselectcommittee.house.gov/media/letters/letter-to-webull-ceo-on-company-s-deep-ties-to-the-prc
6. Indiana Attorney General's multistate inquiry: https://readthereporter.com/?p=121353

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