The launch of REKT
A community-driven recovery effort
Background
On February 19, 2026, the Mezo security team was informed that the Velar BTC/MUSD perpetual swap pool on Mezo was exploited.
Initially, 87 depositors in the Upshift tBTC vault were reportedly affected; after research, it appears 61 had active balances at the time. In response, we proposed a decentralized recovery mechanism.
Today, REKT is live.
Recovery coordination tokens
When depositors lose funds in an exploit, they typically face a binary trade-off: accept the loss or wait for the attacker to return funds voluntarily. A recovery coordination token offers a third path.
The token is issued to depositors in proportion to their losses. Anyone — the exploiter, the protocol, the community, or third parties — can purchase it from the open market (DEX) and burn it.
Each burn permanently reduces supply. Depositors who hold benefit as the circulating supply shrinking, which may increase the amount of recovery. Depositors who need liquidity now can sell into the pool immediately.
The mechanism is fully transparent and on-chain. Burns are irreversible and publicly visible in real time. No party can redirect or reverse them.
REKT — the specifics
The Supernormal Foundation has minted 426,300 REKT:
- 401,300 REKT airdropped to the 61 depositors with active balances at the time of the exploit, pro-rata by BTC balance.
- 25,000 REKT to the Mezo dev team
The team used the 25k REKT to create a REKT x MUSD liquidity pool on Mezo’s native DEX.
What to do if you received REKT
No claim transaction is required. Tokens were sent directly to the wallet you used to deposit on the Upshift tBTC vault on the Mezo chain.
One prerequisite: your Mezo ID must be linked to that EVM wallet. You have three options:
- Sell now - Swap REKT to MUSD on mezo.org for partial recovery today.
- Hold - Hold on to your REKT. Each burn decreases the number of tokens, which could mean a better recovery later.
- LP - Deposit REKT and MUSD on the REKT pool to earn fees from swaps and, later, MEZO emissions.
What Velar can do
Velar can purchase REKT from the open market and call burn() on the token contract. Burns are permanent and publicly visible on-chain.
How can the community help
After the MEZO token launch, we’ll have an opportunity to dig in as a community. veBTC holders will be able to vote, directing emissions to the REKT/MUSD pool. This deepens liquidity and gives depositors who hold a stronger exit over time. SNF will lead by example and initially direct part of our votes to that pool.
Alternatively, community members may also swap MUSD for REKT and send REKT to the burn address.
We will continue to share updates on the SEAL 911 investigation and law enforcement engagement as they become available.
This post is for informational and illustrative purposes only, and does not constitute financial, investment, or legal advice. It contains forward looking statements based on current expectations that are subject to risks and uncertainties that may differ materially from actual results. REKT is a coordination mechanism for fund recovery; it does not guarantee any recovery or return of lost funds. Recovery outcomes depend on factors including but not limited to law enforcement actions, community participation, pool liquidity, and governance decisions. Participants should consult legal, tax, or financial professionals before taking any actions. All actions taken are done so at your own risk.