Webull Stock Sinks 19% on House Panel China Data Risk Allegations

Shares of Webull dropped 19.1% by Wednesday's close to $5.89. The decline followed a House committee report stating the app's data “may remain exposed” to Chinese intelligence requirements. The company described the report as inaccurate.

Around 28 million users globally have accounts with the broker, which oversees $24.6 billion. Webull's annual filing reveals that founder Anquan Wang, a Chinese citizen, commands 79.2% of the voting rights.

How a Webull Customer's Account Is Protected

Webull is a participant in the Securities Investor Protection Corporation (SIPC), an industry backstop that covers clients if a US brokerage becomes insolvent.

According to Webull's help page, SIPC protection extends to $500,000 per account, with a $250,000 limit on cash. Price declines in stock values are not covered.

Funds placed in Webull's Cash Management program are held at partner banks, where the Federal Deposit Insurance Corporation (FDIC) provides coverage of up to $5 million.

The committee's report stops short of banning the application, freezing client accounts, or imposing a fine on the firm.

The Risks Identified by the House Panel

The House Select Committee on China alleges that Webull's software, data pipelines, and fundamental engineering depend on infrastructure falling under Chinese legal jurisdiction, which can compel the transfer of data to the state.

BREAKING: Webull $BULL just crashed over 20% after a House committee accused it of exposing US customer data to China

— Bull Theory (@BullTheoryio) October 7, 2026

Webull's filing shows its China arm, Hunan Weibu, employs 863 individuals, equalling 62% of its workforce. According to the panel, the company had previously stated it had no staff based in China.

The report indicates that worries mounted after October 2025, when the company started holding customer cash on its own books.

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

Webull maintains that the report holds “significant inaccuracies” and states that its US clients' data is housed within the United States under local access controls.

The firm further noted that the committee had not been in touch for over 20 months prior to the report.

Congressional concerns about these ties were first voiced in a letter dated December 2024. The report comes out a few weeks following a cordial September summit between President Donald Trump and China's Xi Jinping.