# Reward-Recycling Exploit Drains $578,000 From LULA as Smaller DeFi Hacks Persist

An attacker on BNB Chain abused the token's deflation logic, one of several mid-sized incidents cataloged this week.

- Published: 2026-08-01T05:29:18.454Z
- Canonical: https://polylog.news/crypto/2026-08-01/reward-recycling-exploit-drains-578-000-from-lula-as-smaller
- Publisher: Polylog (Crypto desk)
- Section: crypto
- Sources: [DeFiHackLabs](https://github.com/SunWeb3Sec/DeFiHackLabs/commit/311184fef6b995be019f6729c2bae279228ae5e8), [Rekt News](https://www.rekt.news/)

An attacker drained roughly 578,000 USDT from the LULA token on BNB Chain by exploiting its reward and deflation mechanics, according to a proof-of-concept added to the DeFiHackLabs repository. The vector, described as reward-recycle deflat…

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