The lawmakers raised concerns about Webull’s compliance with US regulations, especially regarding market fairness, transparency, and data security. ..reports Asian Lite News
Chairman John Moolenaar and Ranking Member Raja Krishnamoorthi of the US House Select Committee on the Chinese Communist Party (CCP) have raised significant concerns about Webull Financial LLC’s ownership structure and operational ties to China . Due to these connections, the lawmakers highlighted the security risks posed to American investors’ data and the broader US financial market.
In their letter, the Committee underscored that Webull, which plans to go public via a merger with the SPAC SK Growth Opportunities Corp., continues to maintain substantial links with Chinese entities.
These include ties to Webull’s parent company, Fumi Technology, and Changsha-based Hunan Weibu Information Technology Co., which has received CCP-backed funding and shares personnel and technology with Webull. The lawmakers raised concerns about Webull’s compliance with US regulations, especially regarding market fairness, transparency, and data security.
Despite Webull’s restructuring to create the appearance of separation from the PRC, the company remains deeply intertwined with Chinese entities, raising serious questions about its independence and its ability to safeguard US user data.
This is particularly concerning given China’s stringent laws requiring companies to cooperate with state intelligence activities. Additionally, the Committee pointed to Webull’s recent move to Florida and the de-registration of brokers based in China, questioning the timing of these changes ahead of the planned SPAC deal.
Further concerns were raised about potential discrepancies in Webull’s compliance with US regulations, specifically in the SEC’s Rule 606 order routing data, which could indicate market manipulation or omissions in reporting.
In light of these risks, the Select Committee has demanded comprehensive documentation from Webull, including information on its efforts to ensure operational autonomy from the Chinese government, its data privacy practices, and its plans to protect the liquidity and security of U.S. investors’ capital.
The Committee has set a deadline of December 31, 2024, for Webull to respond to these inquiries. The Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party has the authority to investigate and provide policy recommendations on issues related to the CCP’s economic, technological, and security activities, especially as they impact American interests. As of the time of this report, Webull has not publicly responded to the letter.
Meanwhile, Taiwan’s Ministry of National Defence (MND) said that seven Chinese military aircraft, 14 naval vessels and three official ships were detected operating around Taiwan until 6 am (local time) on Sunday.
Of the seven People’s Liberation Army (PLA) aircraft, six aircraft crossed the median line of the Taiwan Strait and entered Taiwan’s north, southwestern Air Defence Identification Zone (ADIZ), according to Taiwan’s MND. In response to China’s action, Taiwan sent aircraft and naval ships and deployed coastal-based missile systems to monitor PLA activity.
Sharing a post on X, MND wrote, “7 PLA aircraft, 14 PLAN vessels and 3 official ships operating around Taiwan were detected up until 6 a.m. (UTC+8) today. 6 of the aircraft crossed the median line and entered Taiwan’s southwestern ADIZ. We have monitored the situation and responded accordingly.”
A day before, MND said that 15 Chinese military aircraft, eight naval vessels and four official ships were detected operating around Taiwan until 6 am (local time) on Saturday.
So far in December, Taiwan detected Chinese military aircraft 71 times and ships 50 times. Since September 2020, China has been using gray zone tactics by increasing the number of military aircraft and naval vessels operating around Taiwan.
Gray zone tactics are “an effort or series of efforts beyond steady-state deterrence and assurance that attempts to achieve one’s security objectives without resort to direct and sizable use of force.”
Earlier on December 3, Taiwan’s Ministry of Foreign Affairs criticised China’s interference in the diplomatic relations of other democratic countries, calling it “regrettable” that Beijing fails to understand normal diplomatic behaviours between democratic countries and thus frequently takes “provocative actions,” Taipei Times reported.
Taipei prosecutors on Friday indicted four former military personnel on charges of selling state secrets to China. The four individuals, surnamed Lai, Lee, Lin, and Chen, have been detained, Taipei Times reported.
According to the Taipei District Prosecutors’ Office, the three suspects who were responsible for security at the Presidential Office Building served in the 211th Military Police Battalion, surnamed Lai, Lee and Lin, while Chen served in the Ministry of National Defense’s Information, Communications and Electronic Force Command.
“Lai served from August 2015 to November last year, Chen from December 2017 to July last year, Lee from 2018 to February, and Lin from 2021 to August. From the end of 2021 to the beginning of 2022, Lai and Chen were allegedly brought into the scheme by a man surnamed Huang, who is currently wanted, on behalf of China’s intelligence agents,” prosecutors said.
“Starting in April 2022, Chen used his cellphone to take photographs of classified documents before passing them on to Lai and Chen, or Chinese agents,” prosecutors added.
Further the Prosecutors highlighted that between March or April last year and August this year, Chen, using a fake identity, recruited fellow soldiers to spy for China in exchange for rewards, as per Taipei Times.
“From March or April last year to August this year, Chen, operating under an alias, started to seek out fellow soldiers who would be willing spy on behalf of China for rewards, prosecutors said. He forwarded the information of one active-duty soldier to Lai, although the soldier did not agree to join the scheme,” prosecutors said.
“Lai and Chen were compensated by the level of sensitivity of information provided to the agents, and how many fellow soldiers they contacted as part of the scheme.In October 2022, Lai was transferred to a new unit, and he referred Lee to his old unit, who continued the scheme by using his cellphone to take photographs of official documents and pass them on to agents, prosecutors added
After Lee was discharged from the military, he introduced Lin to the unit, who continued the espionage activities from January of this year onward, they said.
According to Taipei Times, in total, prosecutors estimated that Lai received NT$460,000 (US$14,194), Chen NT$450,000, Lee NT$664,100 and Lin NT$265,900 as rewards.
The office concluded its investigation and charged the four with accepting bribes in contravention of the Anti-Corruption Act and the National Security Act in exchange for collecting state secrets on behalf of China. (ANI)
ALSO READ: Bangladesh’s Chief Advisor Yunus says country is united