Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party have raised concerns about Webull's connections to China. In a letter addressed to Anthony Denier, CEO of Webull, they questioned the security risks associated with these ties and their potential impact on American user data.
The lawmakers stated, "It has come to our attention that Webull, through its ownership and operational frameworks, maintains close ties with entities based in the PRC and connected to firms and individuals who advance the Chinese Communist Party’s interests." They further noted that such ties raise questions about compliance with U.S. regulations.
Webull's relationships with Chinese companies Fumi Technology and Hunan Weibu were highlighted as areas of concern. The committee pointed out shared personnel between these companies and Webull, as well as technology-sharing agreements. They also mentioned grants from the Chinese Communist Party received by Hunan Weibu to support Webull's operations abroad.
In light of these issues, Moolenaar and Krishnamoorthi requested documentation from Denier regarding measures taken by Webull to ensure autonomy from PRC interference. They also sought information on whether any U.S. user data is stored outside America or in China.
The lawmakers argued that despite restructuring efforts by Webull to appear independent from PRC influence, it remains deeply intertwined with entities like Fumi Technology and Hunan Weibu. They expressed concerns over missing disclosures to regulatory bodies such as the SEC, which could undermine investor confidence.
The committee requested comprehensive responses by December 31st, 2024, addressing several inquiries related to data privacy protections for American customers under China's regulatory environment.
Moolenaar and Krishnamoorthi emphasized their authority under H. Res. 11 to investigate CCP’s economic progress relative to U.S., highlighting this issue's importance for national security considerations.
