Webull Faces Scrutiny After Alleged Account Breach and Penny Stock Manipulation

Posted on December 4th, 2025 at 11:23 AM
Webull Faces Scrutiny After Alleged Account Breach and Penny Stock Manipulation

From the desk of Jim Eccleston at Eccleston Law

An emerging investigation into Webull Financial centers on allegations that an unauthorized third party infiltrated the firm’s security systems, accessed customer brokerage accounts, liquidated existing holdings, and used the proceeds to purchase shares of Ten-League International Holdings Ltd. (TLIH). According to reporting, this trading activity inflated the price of the thinly traded penny stock before the unknown party allegedly exited their positions at a profit. Afterward, the stock price collapsed, leaving affected Webull customers with substantial losses. TLIH now trades at roughly forty-two cents per share.

The fallout for these investors may extend beyond market losses. Because their accounts were used to sell securities without authorization, they could also face significant tax liabilities tied to short-term and long-term capital gains.

According to news sources, Webull operates as a registered broker-dealer offering a digital platform that allows self-directed investors to trade at low cost and without commissions. The brokerage firm uses Apex Clearing Corp. for its trading activities. Following reports of the breach, Webull sent customers a form letter attributing the incident to a phishing scam. The firm has not acknowledged any negligence. Broker-dealers, however, have a duty to maintain systems that safeguard customer assets. When inadequate supervision or deficient security controls enable bad actors to enter investor accounts and misuse their funds, the firm may face liability for resulting losses.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, webull

Return to Archive

TESTIMONIALS

Previous
Next

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

January 15, 2026
FINRA Flags Risks of Early Withdrawals and Exchanges in Registered Index-Linked Annuities

The Financial Industry Regulatory Authority (FINRA) has issued a renewed warning to the industry about the risks consumers face when they exit registered index-linked annuities (RILAs) before the end of the contract term.

January 14, 2026
FINRA Fines and Suspends Wells Fargo Advisor Over Fictitious Expense Claims

The Financial Industry Regulatory Authority (FINRA) fined and suspended a Wells Fargo Advisors representative in Waco, Texas, after finding that he submitted fictitious business expense claims, according to a FINRA Acceptance, Waiver and Consent (AWC) letter.

January 12, 2026
Florida Man Indicted in $36 Million Investment Fraud Scheme

According to news sources, federal prosecutors allege that a Florida man orchestrated a multimillion-dollar Ponzi scheme that funded a luxury lifestyle built on stolen investor money, according to the U.S. Department of Justice.