From Startup Fortune · · 1m
Congress Calls Webull Structurally Tied to China
Webull stock crashes after Congress reports its app is structurally tied to Chinese government.
In brief
Webull stock crashes after Congress reports its app is structurally tied to Chinese government. Congress found Webull's trading platform has deep ties to China, causing its stock to drop 19.1%. Originally reported by Startup Fortune.
Congress panel says Webull tied to China
A House panel reported Webull's trading app is structurally tied to Chinese government authorities.
“tied in structural ways”
Webull stock drops 19.1%
Webull shares fell 19.1% to $5.89 after opening at $5.15 on October 7.
“down roughly 19.1% at $5.89”
Committee report details structural gap
The committee found Webull's mainland Chinese subsidiary employs 62% of its global workforce.
“employs 863 people, which the panel says amounts to 62% of the company's entire global workforce”
Webull claims no Chinese offices
Webull previously stated it has no offices or employees in China, but the report contradicts this claim.
“does not have any offices or employees based in the People's Republic of China”
Committee flags data risks
China-based operations expose US user data to Chinese government authorities.
“put American investors and their data at risk”
Webull disputes findings
Webull says it made efforts to cooperate but did not hear from committee for over 20 months.
“made every effort to cooperate with the Committee, but did not hear from them for more than 20 months before this report was released”
Webull's structural China ties
Webull's engineering and data pipelines run through Chinese-controlled infrastructure.
“all of it dependent on infrastructure governed by Chinese law”
The one thing
Congress found Webull's trading platform has deep ties to China, causing its stock to drop 19.1%.
