Webull Stock Plunges

US lawmakers flag ties to China, posing national security risk. Webull's stock drops 19% after report release.

Global Newsflix13 h ago 2 min read

A US congressional committee says trading platform Webull poses a national security risk due to its ties to China. The company's stock plummeted 19% on Wednesday after the report was released.

The bipartisan House Select Committee on China found that Webull's ownership architecture, technical workforce, and technology infrastructure are tied to the Chinese government. This raises concerns about the company's ability to protect US customer data.

Webull has 28.2 million users, with roughly 85% of its funded accounts held by US users. The committee warned that Webull's US customer data could be exposed if the company is compelled to comply with Chinese laws and government requests.

The company was founded in 2016 by Anquan Wang, a former Alibaba employee. Webull went public on the Nasdaq via a special-purpose acquisition merger with SK Growth Opportunities in 2025.

Webull pushed back on the report, stating that it contained significant inaccuracies and unsupported conclusions. The company's stock has cratered by 40% over the past month.

The report's release has sparked concerns about Webull's regulatory standing in the US. The company's stock faced its worst daily drop since April 17, 2025.

Rep. John Moolenaar, who chairs the committee, warned investors to heed the information when choosing who they invest with. The committee's findings have significant implications for Webull's future operations in the US.

Key facts

Webull's stock drops 19% after US lawmakers flag ties to China
The company poses a national security risk due to its ties to the Chinese government
Webull has 28.2 million users, with 85% of funded accounts held by US users
The company's stock has cratered by 40% over the past month

Three perspectives

Neutral

The report's release has sparked concerns about Webull's regulatory standing in the US. Investors are advised to exercise caution when investing with the company. The situation is being closely monitored by US lawmakers.

Positive

Webull has taken steps to expand its user base and increase its presence in the US market. The company's platform provides users with a range of investment options and tools. However, the recent report has raised concerns about the company's ability to protect user data.

Negative

The report's findings have significant implications for Webull's future operations in the US. The company's ties to the Chinese government pose a national security risk, and investors are warned to heed this information. Webull's stock has plummeted in response to the report's release.