Binance has brought a fund recovery request to the Arbitrum community forum. Through the Binance_Post_Listing account on Nov. 5, 2026, the exchange submitted a formal proposal to the Arbitrum DAO seeking ARB tokenholders’ approval for the return of assets frozen following a $6.34 billion wallet hack.
The assets requested for release consist of 8,425.997 ETH and 74.56 million ARB tokens, valued at approximately $30.5 million. All funds are currently secured at an intermediary address on the Arbitrum One network after being frozen by the Arbitrum Security Council on Oct. 30, 2026, at 8:08 a.m. Hong Kong time.
The previous freeze was executed through a temporary upgrade to the Arbitrum One Inbox smart contract on Ethereum to redirect funds away from the exploiter’s address. The recovery plan proposed by Binance follows a similar procedure: if the proposal is approved by the DAO, the Inbox contract will be temporarily upgraded again to transfer the frozen balance to a Binance recovery address before the code is restored to its original state.
However, transferring the seized assets back to the exchange’s wallets will take weeks.
49-Day Process and New York Legal Requirements
Binance projects that the entire governance process will require at least 49 days, or roughly seven weeks. The timeline consists of one week for forum discussions, one week of preliminary voting on Snapshot, two weeks of onchain voting, and an 18-day withdrawal challenge delay.
Arbitrum’s constitutional rules also set strict requirements before a decision can be ratified. Submitting an onchain proposal requires a minimum of 1 million delegated ARB, while the voting quorum is set between 150 million and 450 million ARB for constitutional update categories.
An additional condition involves legal compliance. Before the onchain voting stage begins, Binance is required to sign an indemnification agreement under New York legal jurisdiction. This agreement is designed to protect the Arbitrum Foundation, Offchain Labs, and Security Council members from potential legal liabilities.
SAFU Fund Commitment and Withdrawal Resumptions
Binance emphasized that this proposal does not request funds from the DAO treasury beyond standard governance costs. All recovered stolen assets are pledged to cover operational losses and replenish SAFU user protection reserves.
This governance diplomacy effort coincided with the reopening of exchange systems. On the same day, Nov. 5, 2026, at 04:00 UTC, Binance announced the phased resumption of eighth-round withdrawals for multiple assets across Ethereum, BSC, Base, Tron, Polygon, and Sui.
For Arbitrum voters, the upcoming vote serves as a real test of how decentralized governance responds to intervention requests from a centralized exchange.
Reported via crypto.news.
Read also: What Is DeFi (Decentralized Finance)?
Previously: Arbitrum Moves $30.5M in Stolen Binance Crypto Without Private Keys - Return Awaits DAO Vote
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
