The 28-year-old Scarborough man was arrested yesterday and spent the day being questioned about the death of Alan Atkin, who was found dead in his flat in Swan Hill Road on Wednesday.
Mr Atkin, who had been confined to a wheelchair for the past 20 years, was found by two female friends with severe injuries to his face, head and body.
There was no sign of forced entry into the flat and North Yorkshire Police say Mr Atkin possibly knew the person who carried out the assault.
Following the arrest, senior investigating officer Det Chief Insp Alan Carey said officers wanted to hear from anyone who knew Mr Atkin and noticed any suspicious activity between Friday April 16 and Wednesday April 21.
He said: "Alan Atkin was a fairly well-known figure in Scarborough who regularly socialised in the town.
"He will be recognisable to many local people as he used a wheelchair to get about.
"I am therefore appealing to anyone who was a friend or acquaintance of Mr Atkin to come forward to the police as a matter of urgency."
Following the discovery of Mr Atkin's body officers have been carrying out house-to-house inquiries .
Anyone with any information can contact North Yorkshire Police on 0845 60 60 24 7, or Crimestoppers on 0800 555 111.