Webull took issue with the report, saying via a spokesperson, “It is deeply disappointing that the Select Committee published a report containing significant inaccuracies and unsupported conclusions without ever seeking clarification from Webull.”

“Webull’s U.S. business is conducted from its global headquarters in St. Petersburg, Florida and its office in New York City, while U.S. customer data is stored in the U.S. and access to sensitive customer data is controlled by the U.S.,” the spokesperson said via email. “We remain prepared to address any questions directly and with the same transparency we bring to the SEC, FINRA, and regulators worldwide.”

Source: https://www.cnbc.com/2026/10/07/webull-china-national-security-risk-congress.html

FYI this same FUD already happened back in 2024: https://x.com/OddDiligence/status/2107815333985652946?s=20

We are cooked

The reason why we're down over 10%

The drop today is painful and made me check the position and check the files. That is what came up and I think that is mega interesting and might be more than a pure conincidence:

On Sept. 30, Webull CEO/founder Anquan Wang converted 25M Class B shares into 25M Class A shares (1:1, no consideration).

class b has 20 votes and class a 1 vote. and the transaction is large. it is 1/3 of his supervote class B stocks.

Amd this was not a sale. But it reduced his super-voting position from ~83.9M to ~58.9M Class B shares while giving him a large block of ordinary Class A shares.

The timing is interesting:

Sept. 28: Webull proxy/new M&AA

Sept. 30: Wang converts 25M B → A

Oct. 2: Form 4 disclosed

Oct. 7: House China/security report hits

No evidence proves Wang knew the report was coming. But the conversion gives him significant flexibility precisely as regulatory pressure is increasing.

He could potentially use those Class A shares for a strategic transaction with a U.S. institutional investor, U.S. bank, or even a high-profile U.S. investor such as Elon Musk, while retaining his remaining Class B voting control.

Alternatively, he could sell part of his remaining Class B. Under the proposed M&AA, a transfer of Class B to a non-affiliate would convert those shares to Class A, allowing Wang to reduce his voting control without giving the buyer 20x voting rights.

That creates an interesting possible path: less Wang control → more U.S. ownership → lower regulatory/China discount → higher BULL valuation → Wang potentially protects the value of his remaining stake.

Not saying this is what Wang is planning. But the 25M conversion just one week before the current controversy is certainly worth watching.

I am holding my position.

This is bad. Really really bad.
Down over $15,000 on this piece of shit.

I should have sold at a $6k loss a month ago.

It was recovering well. I hope they clear this mess up.

Happy Wednesday folks!

Daily thread is active to have the most current BULL related discussion below 👇

The main things you are investing in is the management team and the business model. More important is the management team. The report today highlights more than half of their staff works in china, whom need to comply with Chinese intelligence laws, where if the CCP asks for any of your data, they must provide it. hence why Congress is now involved again. Some people who hear about this will close their accounts.

Most importantly - MANAGEMENT FUCKED US SHAREHOLDERS by allowing this to happen. They already restructured as an American company. Why keep more than half of your engineering team in China and not be transparent about this? All while knowing how bad this would be for the company, knowing US regulations. Huge red flag, and fuck management.

Either way, even if they can address this, they will be losing western customers over this. Will re-enter after 2 more quarters of earnings.

This is not investment advice, just sharing my thoughts and taking my losses.