Binance has formally asked Arbitrum DAO to authorize the release of 8,426 ETH and 74.56 million ARB currently held at a frozen address on Arbitrum One, following an emergency security intervention on October 30. The exchange submitted the proposal through its official governance forum account and said it would use the recovered assets to cover losses and expenses tied to the security incident, without requesting new funds from the DAO treasury.
The initial freeze occurred at 8:08 a.m. Hong Kong time, when Arbitrum’s Security Council implemented a temporary upgrade to the Inbox contract on Ethereum. This allowed the transfer of assets from an address associated with the exploit into a designated frozen address. The council then restored the contract’s original implementation and reported that other users’ funds and applications were unaffected. Under Arbitrum’s governance rules, the frozen balances cannot be moved through an ordinary transaction; releasing them requires authorization through a DAO vote.
Binance’s proposal uses a similar technical approach: if approved, the Inbox contract would be temporarily upgraded again, the balances would be transferred to an address designated by Binance, and the temporary functionality would then be removed. The exchange confirmed it has already covered affected customers through its Secure Asset Fund for Users and corporate treasury, and it wants the recovered assets to replenish those reserves rather than placing the financial burden on Arbitrum’s treasury.
The governance process is expected to take approximately 49 days, including one week of forum discussion, a seven-day preliminary temperature check, and a two-week binding onchain vote, plus additional waiting periods on Arbitrum and Ethereum. Submitting an onchain proposal requires at least one million delegated ARB tokens, and approval requires sufficient participation and more votes in favor than against.
In the market, ARB has staged a short-term rebound but remains at a technical inflection point. Early on November 6, ARB rose about 4.02% in one hour to trade near $0.1631 on Binance spot, with a market value near $1.095 billion and a rank of 71st among crypto assets. The token later traded near $0.17, up roughly 7% over 24 hours, but stalled at its 50-day moving average. It remains above its 200-day moving average near $0.15, though it is still down about 16% over the past month. The daily RSI near 48 and MACD below its signal line suggest momentum has not yet shifted decisively in favor of buyers. Traders are watching whether ARB can clear resistance near $0.19, which could open a path toward $0.21; failure to hold the 200-day support near $0.15 could expose the next support near $0.13.
The vote is being watched as a live test of how a decentralized governance body handles a centralized exchange’s claim over recovered assets, and any eventual release could add supply to the market if those tokens are sold.
