Congressman John Moolenaar Chairman of the Select Committee on the CCP | Official Website
Congressman John Moolenaar Chairman of the Select Committee on the CCP | Official Website
Chairman John Moolenaar (R-MI) and Ranking Member Raja Krishnamoorthi (D-IL) of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party have addressed a letter to Anthony Denier, CEO of Webull. The communication raises concerns about Webull's connections with entities in the People's Republic of China (PRC), potentially impacting American user data security.
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 highlighted issues regarding compliance with U.S. regulations, emphasizing risks posed by Webull to the U.S. financial market.
Concerns center around Webull's links to Chinese technology companies Fumi Technology and Hunan Weibu. The letter notes that these relationships involve shared personnel and technology-sharing agreements. Additionally, grants from the Chinese Communist Party are reportedly supporting Webull's operations abroad.
Webull's intention to go public in the United States has been marked by questions over its disclosure practices. The lawmakers assert that these ties raise doubts about Webull’s independence and its capacity to comply with U.S. financial regulations.
Further complicating matters is China's regulatory environment which might affect U.S. citizens' personal data due to laws compelling cooperation with state intelligence activities. This situation poses significant risks for American investors using Webull's platform.
The committee seeks detailed information from Mr. Denier on measures taken by Webull to ensure autonomy from PRC interference, protection of U.S. user data, liquidity assurances for customers, reasons behind broker de-registration in China, SEC Rule 606 disclosures process, and other compliance-related queries.
Moolenaar and Krishnamoorthi express skepticism about whether recent restructuring efforts by Webull genuinely distance it from PRC influence: "while Webull has restructured...it remains deeply intertwined with PRC entities."
They conclude their inquiry seeking prompt responses by December 31st, 2024.
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