Rekt

"Rekt" is slang for "wrecked," describing severe or total financial loss from cryptocurrency trading, failed investments, liquidations, scams, rug pulls, or market crashes, often used to acknowledge catastrophic losses that wipe out significant portions of portfolio value or entire positions.

Rekt events occur through multiple mechanisms including leveraged position liquidations during volatile price movements, rug pulls where developers abandon projects and steal funds, pump and dump schemes where late buyers suffer losses exceeding 90%, smart contract exploits draining user funds, exchange collapses leaving customers unable to withdraw, and dramatic price crashes on speculative tokens with no fundamental value.

Common rekt scenarios in fraud investigations include retail investors becoming rekt after providing exit liquidity in pump schemes, users getting rekt through phishing attacks or wallet drainer malware, leveraged traders getting rekt through coordinated manipulation targeting stop losses, DeFi users getting rekt from unaudited smart contract vulnerabilities, and NFT buyers getting rekt from artificially inflated floor prices collapsing. Compliance professionals analyzing fraud cases should document rekt victims' losses, transaction histories showing entry points relative to insider selling, and communications revealing how victims were lured into positions. Blockchain analytics can trace flows from rekt victim wallets to scammer addresses, mixer services, or exchange deposits. Victim statements frequently describe getting rekt as validation point in fraud investigations, providing evidence of harm and financial loss required for criminal and civil proceedings.