Binance has formally asked the Arbitrum DAO to release crypto frozen after its recent hot‑wallet exploit, kicking off a governance process that could take seven weeks or more. What Binance asked for - On Nov. 5, Binance submitted a proposal via its Binance_Post_Listing forum account requesting the release of 8,425.997 ETH and 74.56 million ARB that were immobilized on Arbitrum One following the attack. The funds are currently sitting in an intermediary “frozen” address. - The proposal asks tokenholders to authorize a governance-driven transfer of those assets to a Binance-designated recovery address. The technical approach would mirror the Security Council’s prior action: temporarily upgrade Arbitrum’s Inbox contract to permit a one‑time transfer, then restore the contract’s original implementation. Background: how the assets were frozen - Arbitrum’s Security Council disclosed it froze the exploited funds at 8:08 a.m. Hong Kong time on Oct. 30 (evening of Oct. 29 in the U.S.). The council briefly upgraded the Inbox contract on Ethereum to move the assets into the frozen address, then reverted the contract. - The council said no other users’ funds or applications were affected, and that the frozen assets can only be moved through an Arbitrum DAO governance vote. Who bears losses and costs - Binance says it has been covering affected users’ losses from its Secure Asset Fund for Users (SAFU) and company treasury. Any assets recovered through the DAO vote would be used to reimburse incident-related losses and to replenish reserves already tapped to compensate customers. - Binance says the recovery would impose no direct expense on the DAO beyond normal governance execution overhead. Governance timeline and mechanics - Binance estimates the governance process will take roughly 49 days but acknowledges it may be longer. Its expected schedule: - 1 week of forum discussion - 1 week temperature check (Snapshot) - 2-week onchain vote - ~18 days after approval before the recovery transaction executes - Key Arbitrum governance rules: - Formal onchain proposals require at least 1 million delegated ARB to submit. - A three‑day waiting period precedes voting. Voting normally lasts 14 days and can be extended if quorum is reached late. - Approval needs more votes for than against plus a participation requirement counting both support and abstentions. For constitutional proposals the participation threshold is half of delegated votable tokens, subject to a minimum of 150 million ARB and a maximum of 450 million ARB. - Successful proposals must also clear waiting and finalization windows on Arbitrum and Ethereum, including the rollup’s challenge period between them. Legal safeguards and conditions - The draft proposal would bar onchain submission and delivery if a restraining notice, writ, court order, or other legal process blocks the transfer—unless a competent court allows it. - Binance agrees to hold any delivered assets separately at the recovery address while legal disputes remain unresolved and to defend competing claims at its own expense. - Before onchain submission, Binance must sign indemnification agreements covering the Arbitrum Foundation, Offchain Labs, and Security Council members. Those agreements would be governed by New York law, with disputes assigned to state and federal courts in New York County. Other recovery and safety updates from Binance - In its eighth recovery update, Binance said additional withdrawals would begin reopening from 04:00 UTC on Nov. 5 for selected assets across Ethereum, BSC, Base, Tron, Polygon and Sui. Withdrawals will return progressively as security checks for each asset/network pass; deposits remain open. Binance is prioritizing tokens by recent demand and warned that heavy traffic could cause temporary delays. - Also on Nov. 5, Binance removed all API keys linked to third‑party platform SignalPlus after the provider reported a potential security issue. Binance said its own systems were unaffected and user funds were safe. SignalPlus users were advised to check positions and orders directly on Binance, wait for confirmation before reconnecting API keys, and enable IP whitelisting. Bottom line Binance’s request starts a formal Arbitrum governance path to unlock and recover funds frozen after the hack. The proposal includes legal protections and indemnities to shield Arbitrum parties from liability, but community approval is required—and the process, including technical and legal finalization, could take weeks. Read more AI-generated news on: https://app.chaingpt.org/news