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@ NVSTly
2025-05-01 14:30:17
Retail investors/traders are everyday Americans, non-institutional traders. It is unlikely that Webull would freeze funds just as much as it is unlikely that TikTok creators & sellers would have their funds siezed- and there is far more money flowing through TikTok than there is on Webull. There's a significant tenfold chance that a US crypto exchange would collapse before Webull decides to withhold funds from Americans because their government says so.
For Webull to operate in the US, they use Webull Financial LLC which is independent in the US and under US regulations such as FINRA. It is also SIPC protected, meaning accounts are insured up to $500,00 including $250,000 for cash- so regardless of Webull's origins, it is under US regulations and guidelines. They also use Apex Clearing which further insulates your Webull account from foreign interference.
The same regulations applies to Moomoo, Robinhood, TradeStation, IBKR, etc. If they are operating in the US, they abude by US regulations.
Your views on China during the current economic FUD is valid- but American retail traders/investors with funds in a Webull account can rest easy knowing their funds are insured- up to a point, and like you said, more than the average $5000 account size.
Just for the sake of your argument if something did happen, would it be a blow to the average American on Webull? Sure. Would they lose those funds forever? No. Would it take time to recover those insured funds? Absolutely. But this is irrelevant, Webull funds from American users are in a US-based LLC, and any assets owned by these users are also managed by Apex Clearing- a completely separate entity from Webull.