The SEC requested that the funds of Binance, CZ and their affiliated companies be frozen, but the exchange's lawyers disagree.
Specifically, the SEC seeks to freeze the assets that are currently in the accounts of the operating companies of Binance.US. In this case, BAM Management US Holdings and BAM Trading Services,
Binance's legal team characterizes the request for the order to freeze its funds as a "draconian and improper" action by the SEC.
Previously, the agency had said it was acting "in the best interests of clients" as well as to prevent "defendants from destroying, altering, or concealing records relevant" to the legal proceeding.
However, Binance's lawyers claim that the SEC does not present sufficient evidence that this could happen. Rather, their petition "reduces only to concerns that assets may be transferred outside of the United States because defendants BAM Holding and Zhao are located outside of the country."