Full Breakdown
House Committee Scrutinizes Webull’s Claims on U.S. Customer Data Access
By Drooid · · How we work
Committee Raises Questions About Data Controls
The bipartisan House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party released a report in early October questioning Webull’s public assurances that no employees outside the United States can view sensitive U.S. customer information. The committee highlighted the brokerage’s privacy notice, which allows affiliates in foreign jurisdictions to access personal data, and pointed to the company’s technology architecture that routes the U.S. app through a Singapore affiliate and is supported by a China-based subsidiary, Hunan Weibu Information Technology Co.
Webull’s Public Position
Webull responded to the committee’s concerns in a statement to the Securities and Exchange Commission (SEC), asserting that all U.S. The firm also emphasized that its broker-dealer operations are directed exclusively by U.S.–based personnel and that protecting customer data is central to its operations.
Internal Messages Suggest Possible Access From China
CNBC obtained internal Microsoft Teams messages from 2021 that the committee says show a Webull employee, identified as Zhenghan Wang, communicating from Beijing about a U.S. customer account. In the exchange, manager Brendan Fuller asked Wang whether the account had been approved, and Wang confirmed that both a China team member and a U.S. team member had approved it. The committee’s analysis noted that the timestamps aligned with Beijing daytime hours and that Wang’s software was set to translate the messages into simplified Chinese.
Regulatory and Enforcement Background
Webull has faced multiple regulatory actions in recent years. A 2023 Massachusetts consent order resulted in a $500,000 fine for providing inaccurate complaint figures, while California regulators sanctioned the firm for delayed record provision. FINRA fined Webull $3 million in 2023 for deficiencies in options-trading approvals and complaint handling, which the company accepted without admission. The committee’s report adds to this history by alleging that the brokerage’s structural ties to China could pose a national-security risk to U.S. investors.
Official Statements & Responses
The dispute underscores ongoing tension between U.S. regulators and fintech firms with significant overseas operations, and it may prompt further scrutiny of data-security practices across the industry.