House Panel Calls Webull’s China Ties a National Security Risk; BULL plummets nearly 30%

A bipartisan US House panel has characterized Webull's links to China as a national security risk, according to a report reviewed by CNBC ahead of its expected publication on Wednesday, October 7, 2026. Shares of the online broker 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 on volume approaching 28 million shares.

The House Select Committee on the Chinese Communist Party opened its examination of Webull in December 2024, seeking information about the company's China-based developers, its ownership structure and the safeguards protecting American customer data. Per CNBC, the panel's concerns focus on founder and CEO Anquan Wang and Webull's ongoing technical operations in mainland China.

Webull's latest annual report disclosed that Wang beneficially owned 16.4% of outstanding shares but controlled 79.2% of voting power as of March 31, 2026, through the company's dual-class share structure. The same filing said Webull's mainland Chinese subsidiary employed 863 people at the end of 2025, representing 62% of its global workforce, and that the unit provides research, development and technical support. The committee reportedly argues that Webull's ownership, engineering operations and technology infrastructure remain structurally connected to China. The material reported so far does not establish that Chinese authorities obtained Webull customer information or that customer data was compromised.

Clearing shift and customer assets

Separately 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, placing 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, a figure that includes securities held in custody by Apex and should not be read as the amount of cash carried directly by the broker.

Webull has maintained that personally identifiable information belonging to its US brokerage customers is stored on servers in the United States, and that 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, and its publication is expected to clarify whether the panel is seeking action from financial regulators or other government agencies.