Berachain's privacy terms revealed: Brevan Howard's $25 million investment can be refunded after the TGE, and other investors are not aware of this.

BlockBeats news, on November 25, according to unchainedcrypto, Berachain granted one of its Series B funding lead investors, Brevan Howard, the right to “receive the investment amount back without risk after the TGE” without the knowledge of other investors. It is reported that Berachain has raised at least $142 million, with its tokens valued at $1.5 billion in the last round of financing, led by Framework Ventures and the Nova Digital fund under the $34 billion hedge fund Brevan Howard. A former employee, who requested anonymity, recalled that Berachain co-founder, codenamed “Papa Bear,” pointed out that Brevan's participation could enhance the project's legitimacy. However, the terms of the Series B round are particularly favorable for Brevan's Nova Digital fund. According to documents, Berachain granted the fund the right to exercise a refund on its $25 million Series B investment within one year after the token generation event on February 6, 2025. This clause means that unlike traditional venture capital, Brevan's fund bears zero risk on the principal: if the BERA Token performs well, the fund can enjoy the returns; if it performs poorly, the fund can request a full refund. Four lawyers specializing in the crypto field said that granting investors the right to a refund after a TGE is extremely rare. Two of the lawyers pointed out that even if a refund right appears in token financing, it usually only triggers when the project fails to issue tokens. If Nova Digital exercises its refund right (given that the current token price has fallen about 66% from the $3 investment price, exercising the right makes financial sense), it may force Berachain to raise $25 million in cash to pay back its investors. According to project documents, the tokens purchased by Berachain investors are subject to a one-year lock-up period, so if Nova exercises the refund right, it may forfeit its BERA allocation. It is still unclear whether Nova's fund's refund right is legal—especially when other investors were not informed of this clause, with the deadline for Nova Digital to exercise its refund right being February 6, 2026.