Webull stock crashes 32% after Congress links brokerage to China

Webull shares plunge on China ties report

Webull, a brokerage platform known for trading stocks, crypto, and prediction markets, saw its shares drop as much as 32% in pre-market trading on Wednesday after a bipartisan US Congressional committee called the company a national security risk.

The US House Select Committee on China released a report accusing Webull of hiding deep structural ties to China, despite the company marketing itself as an American business. Webull has 28 million registered users globally.

What the report found

• The committee said there is "a profound gap" between Webull's image as an American company and the reality of who funds and influences it.
• Ownership, workforce, technology, data flows, financing and compliance are all "tied in structural ways" to China, the report concluded.
• Webull previously told committee members it had no offices or employees in China, but its mainland unit Hunan Weibu now employs 863 people, or 62% of its global workforce.
• Two Chinese companies are at the center of the concern: Fumi Technology, which founded the business, and Hunan Weibu.

Government grants and political influence concerns

Congressmen John Moolenaar and Raja Krishnamoorthi wrote to Webull CEO Anthony Denier in December 2024 about the company's ties to China. They noted that Hunan Weibu collected grants from the Changsha Municipal Government in Hunan province.

According to the congressmen, recipients of that government's special fund must "support the leadership of the Chinese Communist Party," which they said suggests direct influence by the CCP over Hunan Weibu and, by extension, Webull.

Insider selling and investor losses

Webull president Anthony Denier sold 53,846 shares on Monday, less than 48 hours before the report was published. The company said the sale was made under a trading plan he adopted in May. All insider transactions at Webull so far this year have been sales, with no insider purchases.

Webull's stock reached an all-time high of $79.56 on April 14, 2025, one trading session after its Nasdaq debut. It has since fallen below $5.80, wiping out 92% of shareholder value from the peak.

Customer assets at stake

In October 2025, Webull began accepting custody of customer money. The congressional committee alleges this created a structural exposure of billions of dollars in American capital, estimating $24.6 billion in customer assets are now affected.

Webull operates its US business from Florida and New York and states that American customer data stays on US soil. A company spokesperson called the report's findings deeply disappointing, saying they contain significant inaccuracies and unsupported conclusions and were published without seeking clarification from Webull.

Why this matters for crypto users

Webull allows users to trade cryptocurrencies alongside traditional stocks and derivatives. Any regulatory action or restriction tied to the company's China connections could affect the millions of users who hold crypto assets on the platform.

What happens next

The source does not provide a clear timeline for further action or a response from Webull beyond its initial rejection of the report's findings.

What is still unclear

It remains unclear what specific actions the US government may take against Webull as a result of the report. The company has denied the allegations, and the regulatory consequences have not yet been announced.

Sources

• Protos

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