Webull Stock Falls 20% Over China Ties: Who Really Controls the App?

Webull stock lost 19.1% on Wednesday, closing at $5.89, after a House panel said the trading app’s data “may remain exposed” to Chinese intelligence laws. Webull called the report inaccurate.

The broker holds $24.6 billion for about 28 million users worldwide. Its founder, Anquan Wang, is a Chinese citizen who controls 79.2% of the votes, Webull’s annual filing shows.

What Protects a Webull Customer’s Account

Webull is a member of the Securities Investor Protection Corporation (SIPC), an industry fund that steps in if a US broker fails.

SIPC covers up to $500,000 per account, including $250,000 in cash, Webull’s help page says. It does not cover losses when stock prices fall.

Cash in Webull’s Cash Management program goes to partner banks. There, Federal Deposit Insurance Corporation (FDIC) insurance covers up to $5 million.

The committee’s report does not ban the app, freeze accounts, or fine the company.

What the House Panel Says Is at Risk

The House Select Committee on China says Webull’s software, data pipelines, and core engineering rely on systems subject to Chinese law. That law can force companies to hand data to the state.

BREAKING: Webull $BULL just crashed over 20% after a House committee accused it of exposing US customer data to China pic.twitter.com/nA18j2dnCy

— Bull Theory (@BullTheoryio) October 7, 2026

Webull’s China unit, Hunan Weibu, employs 863 people, or 62% of its staff, its filing shows. The panel says Webull earlier told it that it had no employees in China.

Concern grew after October 2025, when Webull began holding customer cash directly, the report says.

“Using technology providers in mainland China and an opaque China-linked ownership structure, Webull exposes its data to our foremost adversary,” CNBC reported, citing Rep. John Moolenaar, the committee’s chairman.

Webull says the report contains “significant inaccuracies.” It adds that US customer data is stored in the US, with access controlled there.

The company also said the panel had not contacted it in more than 20 months.

Lawmakers first raised these links in a December 2024 letter. The report lands weeks after a friendly September summit between President Donald Trump and Chinese leader Xi Jinping.