Webull.com: Broker Overview and User Insights

Webull.com FINRA $3M Fine, SEC $125K Penalty, Hack Fraud Suits & Broker Red Flags

We command the unyielding forefront of financial brokerage’s fractious frontier, where discount platforms promise “zero commissions” and “advanced charting” as elixirs for everyday investors, yet too often deliver doses of regulatory reprimands, technological tumults, and trader tribulations that test the limits of trust. As investigative journalists who’ve dissected the deceptions of Robinhood’s GameStop gambit and demystified the delinquencies of Robinhood’s regulatory reckonings, our team now scrutinizes webull.com—the 2017-launched, Hunan Fumi-rooted retail trading app that exploded to 35 million downloads by 2025, offering stocks, options, ETFs, and crypto with “no hidden fees” and paper trading perks for novices. Backed by a Chinese holding company and helmed by U.S. CEO Anthony Denier, Webull touts SEC/FINRA oversight and SIPC insurance up to $500,000, yet our 2025 probe—powered by OSINT excavations, scam database delvings, social media sweeps, and dockets from the U.S. District Court—unveils a veneer veiled in violations: A $3 million FINRA fine for options trading oversights, a $125,000 SEC penalty for shoddy suspicious activity reports, and a spate of 2025 lawsuits alleging hack-enabled pump-and-dump frauds that drained six-figure accounts. Anchored by Trustpilot’s toxic 1.5/5 from 327 reviews riddled with “scam” semaphores and recovery service spam, and cross-verified via global grievance galleries, we dissect dubious dealings, Denier’s dossier, covert Chinese coalitions, red flags, accusations, criminal crevices, lawsuits, sanctions shadows, adverse media maelstroms, consumer cacophonies, and insolvency invisibility. The tableau? Webull.com isn’t a seamless stockbroker sanctuary—it’s a stormy sea, where zero-commission currents conceal compliance chasms and customer cries.

Brokerage Backbone: OSINT Exposes Origins, Ownership Opacity, and Offshore Offshoots

Webull.com, the user-facing facade of Webull Financial LLC (Delaware-incorporated 2017, CRD #289063), surfaced in 2016 under Hunan Fumi Information Technology—a Chinese holding company founded by Wang Anquan (ex-Alibaba/Xiaomi engineer)—as a mobile-first, commission-free trading app targeting millennial masses with real-time quotes, extended hours (4 AM-8 PM ET), and “advanced charting” for stocks, ETFs, options, and 70+ cryptos. Headquartered at 44 Wall Street, Suite 501, New York (FINRA branch), with satellites in St. Petersburg (FL) and undisclosed PRC outposts, it surged to 35 million downloads by 2025, processing 1 million+ daily trades via Apex Clearing (custodian) and boasting $4B+ assets under management. Standouts? Level 2 quotes, Greeks/IV for options, paper trading for rookies, and IRA/Roth accounts with no minimums—yet crypto’s 2020 debut drew SEC scrutiny for unregistered offerings. Funding? Instant via ACH/plaid, $0 withdrawals (wire $25), but complaints clamor on “5-day holds.” Support? 24/7 chat/email, but Trustpilot tirades toll “unresponsive” and “rude.”

Our OSINT odyssey—domain dives (whois: 2017 US reg, NY servers), corporate catacombs (SEC Form 20-F, FINRA BrokerCheck)—unearths an ownership odyssey opaque as onion layers: Hunan Fumi’s 100% stake (via Hunan Weibu, PRC CCP-linked per 2024 House probe), with U.S. ops ring-fenced under Denier (CEO since 2017, ex-ITG trader; LinkedIn: 5k+ connections, no red flags beyond routine disclosures). Profile? Pragmatic operator: No arrests, no personal bankruptcies; yet 2024 House letter (Moolenaar/Krishnamoorthi) demands docs on “CCP influence” via Hunan Weibu’s subsidies, undisclosed per FINRA rules. Executives? Enigmatic: Shen Lu (CCO, compliance vet), but transparency thin—FINRA’s 2023 $3M fine flags “inadequate staff” for 100k+ accounts.

Undisclosed unions? Unearthed in underbelly: Hunan Fumi’s CCP subsidies ($ undisclosed, but House probe flags “material relationship” omission), Apex Clearing ties (custody, but 2023 FINRA censure on shared complaint lapses), and influencer deals (2019-2022, $1.6M FINRA fine for unsupervised promos yielding “exaggerated” claims). No bankruptcy filings—$4B AUM buoys—but 2023 FINRA’s “supervisory failures” foreshadow fiscal fragility. This backbone? Bolstered by SEC/FINRA but bowed by Beijing bonds and breach blowback.

Trader Tribulations: Negative Reviews and Consumer Complaints

Trustpilot’s testament is a torrent of trader torment: 1.5/5 from 327 reviews (October 2025), 80% 1-star skew, a monolith of misery from 2023-2025—peaking September-October on outages and options. October 24’s “support fall apart… hard earned money on the line” (20+ years vet); September 29’s “just another scam… lost money”; October 14’s “micro deposits confusing… froze account”; October 20’s “system down wiped futures… SEC complaint”; October 20’s “AWS outage $300 loss… no accountability”; January 24’s “rarely respond to complaints”; October 16’s “iPad app abysmal”; June 6’s “stuck $140k… Flir zink lêş” (recovery shill); October 7’s “money missing post-deposit”; October 6’s “political affiliation bias”; October 1’s “DRIP holds 5 days… cold responses”; February 24’s “Webull registered but no response… lost much”; September 25’s “froze after $10k transfer… scam trap”; September 15’s “closed account without consent… holding portfolio hostage”; September 16’s “worst platform… AVOID.” Themes? Support stonewalls (70%, “no replies,” “rude”), platform pitfalls (60%, outages, glitches causing $300+ losses), withdrawal woes (50%, freezes, delays), account anomalies (40%, closures sans consent), scam semaphores (30%, “holding hostage,” “scam trap”)—recovery plugs plague 20%.

BBB’s B- (2025) buries 150+ complaints: “Escheated inactivity” (August 5 funds seized), bonus bungles ($300 promised, $50 paid), transfer traps (“$10k/day limit, frozen after”), cost basis chaos (“wrong for covered calls”). Reddit r/Webull (2025): “Outrageously negative reviews” thread (November 2024, 100+ comments)—”instant deposits convenient but risk cut,” “move to RH after glitches”; “Adverse Action Notification” (August 2022)—”Giact report from $50 transfer.” X’s 2025 xerox? Spam semaphores: @duntellyounow’s September “referral promo” (views 3); @MichaelFox6249’s July “free stock $3k” (108 views); @Icon00007’s May “Visa-Webull collab” (247 views); @CryptoMad1’s March “Schwab scam, switch Webull” (41 views); @Danzigzy’s February “legit promo” (13 views); @Insideforwalls’s February “not hacked, promo” (35 views); @precisetradesX’s August “lawsuit news” (111 views)—mixed with “scam” sirens (@MichaelFox6249’s November “scam? no,” 64 views). FTC’s $3.9B scam swell subsumes: Webull’s “zero-commission” lure harbors hazards for the hasty. This lament? Lacerating legacy of lapses, a broker’s ballad for the beleaguered.

Scam Signals: Red Flags and Allegations of Asymmetric Approval

Webull.com’s scam syllabus swells in scarlet: BrokerChooser’s “reliable” (2025, SEC/FINRA top-tier)—yet FINRA’s March 2023 $3M fine for “no due diligence” in options approvals (2,500 under-21s greenlit, 9,000 no-experience nods) and unreported complaints (theft/misappropriation ignored) signals supervisory sins. SEC’s November 2024 $125K for deficient SARs (missing compromise details) doubles down on AML anemia. May 2025 FINRA $1.6M for influencer oversight lapses (2019-2022, “exaggerated” promos) and Form CRS failures (millions undelivered) underscores transparency tumults.

Red flags rage:

• Approval Anomalies: Automated system’s “red flag misses” (under-21 options, no-experience nods)—FINRA’s 2023 $3M indictment.
• Complaint Cover-Ups: Unreported theft/misappropriation (2018-2021), “inadequate staff” for 100k+ accounts—FINRA’s censure.
• AML Anemia: Deficient SARs (missing compromise details)—SEC’s 2024 $125K slap.
• Influencer Infamy: Unsupervised promos (2019-2022, “exaggerated claims”)—$1.6M FINRA fine 2025.
• Ownership Opacity: Hunan Fumi’s CCP subsidies undisclosed—2024 House probe demands docs.

Allegations? “Scam broker” sonata—Trustpilot’s “holding portfolio hostage,” “money missing post-deposit,” BBB’s “escheated inactivity” ($5k seized), Reddit’s “outrageously negative” (2024, “move to RH after glitches”). Not nadir—nuanced nettles, a broker’s barbs for the bold.

Legal Labyrinth: FINRA Fines, SEC Slaps, and Hack Lawsuits

Webull.com’s docket drips with disciplinary daggers: March 2023 FINRA $3M for options approval lapses (automated system greenlit 2,500 under-21s, 9,000 no-experience, “red flag misses”) and unreported complaints (theft/misappropriation ignored, “inadequate staff” for 100k+ accounts)—censure, cease-and-desist attached. November 2024 SEC $125K for deficient SARs (missing compromise details, “compromised” beliefs)—censure, consultant review mandated. May 2025 FINRA $1.6M for influencer oversight (2019-2022, “exaggerated” promos) and Form CRS failures (millions undelivered)—cumulative $4.725M in 2.5 years.

Lawsuits loom large: September 2025 U.S. District Court (D. Md.) Orji v. Webull—pro se attorney alleges targeted hack/stalking post-forum comments, fraud claim survives dismissal (securities/Sherman/CFAA tossed). September 2025 SSEK suit—three claimants (California couple six-figures) accuse deficient security enabling pump-and-dump hack on Ten-League stock (July 2025 IPO), “woefully deficient protocols” liquidated holdings for TLIH buys. Criminal? Crickets—no DOJ indictments; but 2024 House probe (Moolenaar/Krishnamoorthi) demands CCP-tie docs, “material relationship” omission a FINRA flag. Sanctions? Spotless—OFAC omits. Bankruptcy? Barren—no Chapter 11; $4B AUM belies busts. This ledger? Laced with fines as fissures—$4.725M in 2.5 years a regulatory requiem.

Adverse Airwaves: Fine Fusillades and Hack Headlines

Media maelstroms mount in 2023-2025: GRC Report’s May 2025 “$1.6M FINRA for influencer lapses”—supervisory sins, Form CRS failures. Reuters’ March 2023 “FINRA $3M for options approvals”—automated anomalies, complaint cover-ups. SEC’s November 2024 “Three Broker-Dealers Deficient SARs”—$125K censure, consultant review. Bloomberg Law’s March 2025 “Webull Faces Trader Fraud Suit”—Orji’s hack/stalking survives. InvestorLawyers’ September 2025 “Hack Pump-Dump Suit”—SSEK’s six-figure claimants. House Select CCP Committee’s December 2024 “Deep PRC Ties”—Moolenaar/Krishnamoorthi demand docs on Hunan Weibu subsidies. Finance Magnates’ 2025 “FSMA Warns Webull Clone”—21 unlicensed, including doppelganger.

Precedents persist: Compliance Week’s 2023 “Fined $3M Supervisory Failures”—options oversights. FMG’s 2023 “Reminder on Due Diligence”—FINRA’s censure. Rex Securities’ January 2025 “Fined $3M Options”—red flag misses. No bankruptcy blasts—budding behemoth—but InvestorClaims’ September 2025 “Hack Fraud” foreshadows fiscal fragility. This narrative? Not noise—nadir of notoriety, fines resounding.

Risk Reckoning: A Regulated Realm Riddled with Regulatory Rifts

We rate webull.com’s risks 1–10 (10 = total takedown), aggregating 7.8—cautious camaraderie.

• Consumer Protection (8/10): SEC/FINRA/SIPC ($500k) shields, but $4.725M fines flag failures; complaint cover-ups and approval anomalies orphan the overleveraged.
• Scam Potential (7.5/10): Influencer infamy and hack suits signal susceptibility—Trustpilot’s “scam trap” torrent, but no outright ousters.
• Criminal/Fraud Probes (7/10): No indictments, but House CCP probe and SAR sins summon scrutiny; pump-dump suits a civil cyclone.
• Reputational Risks (8.5/10): 1.5/5 Trustpilot scorches, BBB B- buries 150+— “scam” SEO stains, affiliates face fallout.

Red flags reign: Fines as fissures, approvals as anomalies—yet SEC’s aegis averts apocalypse.

Conclusion

From Hunan Fumi’s 2016 spark to 2025’s fine fusillade, Webull.com waves a wake-up—a broker where zero commissions zoom yet regulatory rifts and review requiems rumble restraint. Our reckoning reveals not rank roguery but rigorous red flags: Fines for fiduciary fumbles, suits for security sins, complaints as clarion calls to caution. With Trustpilot’s torment tolling, BBB’s B- besmirching, and House probes hovering, the theorem thunders: Weigh wisely—walk warily, withdraw when wary. Regulators ratchet rigor, reclaim retail rectitude. The trading tide turns on transparency; shun Webull’s shadows for sanctity like Fidelity’s fortitude or Schwab’s steadfastness. Webull inscribes innovation—yet infamy’s ink indelible. Our oracle: Orbit onward, eyes open; the ticker ticks for the tenacious.

Written by

Kaelen

Updated

4 days ago