<h2 id="header-0">Key Facts</h2>
<ul>
 <li>Binance asked the ArbitrumDAO to release 8,425.997 ETH and 74,559,805.2 ARB that Arbitrum's Security Council froze after the exchange's hot wallet was exploited.</li>
 <li>Binance said the governance process could take about seven weeks or longer, and that the proposal will not go on-chain while any legal process restrains transfer of the funds.</li>
 <li>A separate Polygon proposal, with Binance and Polymarket named as proposers, seeks a hard fork to recover about 70.49 million POL blocked on Polygon PoS.</li>
</ul>
Binance has asked Arbitrum's decentralized autonomous organization to release 8,426 Ethereum (<a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/currencies/ethereum/">ETH</a>) and 74.6 million Arbitrum (<a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/currencies/arbitrum/">ARB</a>), worth about $30.7 million at current prices, that were frozen after the exchange's $6.34 billion hack.
The <a target="_blank" rel="noopener noreferrer nofollow" href="https://forum.arbitrum.foundation/t/constitutional-aip-approve-release-of-frozen-eth-and-arb/31655">Constitutional AIP</a>, posted to the Arbitrum governance forum on Thursday, would send the funds to a Binance recovery address. Binance said the full process "may take approximately seven weeks or longer to complete."
"While Binance is committed to covering all losses from the SAFU Fund and the company's treasury, we want to take this opportunity to work with Arbitrum Governance and recover the funds frozen by the Arbitrum Security Council," Binance wrote in the proposal.<img src="https://academy-public.coinmarketcap.com/optimized-uploads/9064123f079649bb8fa977e95794c716.png">
Binance asked Arbitrum's DAO to release ETH and ARB worth about $30.7 million that were frozen after its hack. Source: <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/currencies/arbitrum/">CoinMarketCap</a>
<h2 id="header-1">How the Arbitrum Release Would Work</h2>
Arbitrum's Security Council froze the funds at 00:08 UTC on Oct. 30 by temporarily upgrading Arbitrum's Inbox contract on Ethereum, moving the assets from the exploiter's address to one that can only be unlocked by a <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/glossary/decentralized-autonomous-organizations-dao">DAO</a> governance vote, according to the council's notice.
Binance's proposal would take a similar action in three steps: add a temporary function to the contract, recover the funds, then remove the function.
The exchange said the returned assets would be applied to losses and costs from the <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/glossary/hacking">hack</a>, including replenishing its <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/glossary/secure-asset-fund-for-users-safu">SAFU</a> fund or treasury reserves. As a condition of the release, Binance also agreed to indemnify the Arbitrum Foundation, Offchain Labs, the Security Council and its members, with no cap on its obligations.
The proposal will not be submitted on-chain while any restraining notice, order or other legal process blocking transfer of the frozen assets is in effect, unless a court modifies or vacates it, Binance said.
<h2 id="header-2">Polygon Weighs a Hard Fork for Blocked POL</h2>
A separate Polygon Improvement Proposal, posted on Wednesday by a member of Polygon Labs' validator support team, names Binance and Polymarket as proposers and seeks a coordinated <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/glossary/hard-fork-blockchain">hard fork</a> to recover about 70.49 million Polygon (<a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/currencies/polygon-ecosystem-token/">POL</a>) tokens held at five blocked addresses on Polygon PoS.
About 46.63 million of that POL, worth about $4.3 million, came from the Binance hack. The rest is tied to Polymarket's <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/article/polymarket-resumes-trading-after-dollar265m-wallet-exploit">$2.65 million exploit</a> earlier on Oct. 29.
Polygon's block producers have blocked the addresses, but the proposal calls the block list "a stopgap" and says the attacker has contacted validators offering cash to help unblock a transaction.
The proposal describes the fork as "an extreme action that should not be reproduced commonly," and it was slated for Polygon's governance call on Thursday.
Stablecoin issuers including Tether and Circle <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/article/tether-circle-ripple-freeze-binance-hack-funds">froze more than $2 billion</a> in USDT and USDC tied to the hack last week, and Binance has <a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/article/binance-recovery-update-4-withdrawals-resume-95-percent-covered">restored 95% of losses</a> as withdrawals resume in phases.
Read More:&nbsp;<a target="_blank" rel="noopener noreferrer nofollow" href="https://coinmarketcap.com/academy/article/aave-unfreezes-markets-binance-hack-nine-assets-zero-ltv">Aave Unfreezes Markets After Binance Hack, Keeps Nine Assets at Zero LTV</a>

Binance Asks Arbitrum DAO to Release $31M in Crypto Frozen After Hack

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