Webull has received criticism from U.S. lawmakers and states attorneys general over its ties to Chinese companies. In 2024, a coalition of state attorneys general launched a probe into Webull over user privacy issues and concerns about the company's links to Chinese Communist Party (CCP) interests.[11]
History
Foundation and early history (2017-2021)
On May 24, 2017, Webull Financial LLC was established as a Delawarelimited liability company[12] by Wang Anquan, a former employee of Alibaba Group.[6][13] In 2019, Webull's U.S. CEO Anthony Denier stated that Webull was “both a U.S. and Chinese company” in an interview.[11]
On January 28, 2021, Webull halted buy orders for stocks affected by the GameStop short squeeze.[18] On that day, Webull recorded its highest-ever number of active daily users at 952,000.[19] That week, approximately 1.2 million people downloaded the Webull mobile app.[20]
Sports deals and IPO negotiations (2021-present)
In September 2021, the Brooklyn Nets and New York Liberty entered into a global multi-year agreement with Webull and the company became the official jersey patch partner for the Nets.[21] Terms of the agreement for the jersey patch weren't announced, but people familiar with the agreement told CNBC that it is a multi-year pact that pays the Nets roughly $30 million per year.[22]
Webull has received controversy owing to its ties to Chinese companies, with Anthony Denier, Webull's U.S. CEO, describing Webull as "both a U.S. and Chinese company" in 2019.[11]
2023 FIRA fine
In 2023, the Financial Industry Regulatory Authority (FIRA) fined Webull $3 million over the company's response to customer's complaints as well as its failure to conduct due diligence when allowing users to trade options.[25]
Lawmaker scrutiny
The Wall Street Journal reported that a number of U.S. lawmakers, including Senator Tommy Tuberville of Alabama, have expressed concerns about Webull in congressional hearings and letters to regulators.[11] In 2022, Tuberville led a bipartisan coalition of U.S. senators in introducing legislation to prevent Webull and other Chinese-owned companies from owning crypto exchange platforms.[26]
2024 U.S. state attorneys general probe
In 2024, attorneys general from 14 U.S. states launched a probe into Webull centered on data privacy concerns and its potential ties to the Chinese Communist Party.[27] In June 2024, the state of Tennessee banned Webull on all government-issued devices.[11]
Userbase
The company has stated it has approximately 20 million users worldwide as of 2024.[27] Anthony Denier, the company's CEO, claimed that Webull's userbase attracted more advanced and experienced investors than competing platforms, such as Robinhood.[28]
^"Webull Financial LLC". Delaware Department of State: Division of Corporations. Archived from the original on September 20, 2016. Retrieved February 14, 2021.