TechFlow, November 25 — According to Unchained, documents show that blockchain project Berachain granted special refund rights to Brevan Howard's Nova Digital fund in its Series B funding round, making the venture capital investment nearly "zero risk" for Nova Digital.
According to obtained documents, Nova Digital invested $25 million in March 2024 to purchase BERA tokens at $3 per token. The fund obtained the right to request a full refund within one year after TGE, with a deadline of February 6, 2026.
Four lawyers specializing in cryptocurrency said it is extremely rare to offer post-TGE refund rights to investors in crypto projects. Currently, the BERA token price is approximately $1.02, down about 66% from the investment price. If Nova Digital exercises the refund right, Berachain will need to pay the fund $25 million in cash.
Two anonymous Series B investors said Berachain did not disclose to them that other investors had refund terms. Lawyers noted this could violate most-favored-nation clauses and SEC anti-fraud requirements. Berachain co-founder Smokey the Bera responded that the report was "inaccurate and incomplete."
