Trading platform Webull's China ties create national security risk, congressional panel finds; stock drops 18%
A congressional committee says trading platform Webull is not the ordinary U.S. company it claims, but exposes customer data to Chinese surveillance risk.
TL;DR
- A bipartisan congressional panel found that digital investment platform Webull is structurally tied to China's government.
- The committee alleges this connection poses a national security threat to U.S. finance, citing risks to American capital and data.
- Webull's ownership architecture, technical workforce, and technology infrastructure are identified as being linked to China.
- The panel claims that China's laws can compel firms like Webull to cooperate with the government, including data transfers.
- Webull disputes the report's findings, asserting its U.S. business and data are managed and stored domestically.
- The company's stock plummeted 18% following the release of the report.
- The committee also alleges Webull misrepresented the number of its China-based employees, stating the mainland subsidiary has grown significantly.