Berachain Privacy Policy Exposed: Brevan Howard's $25 Million Investment is Protected by a Principal Guarantee, While Other Investors are Unaware of This

On November 25th, as per the report by unchainedcrypto, Berachain bestowed upon one of its Series B financing lead investors, Brevan Howard, the entitlement to "risklessly reclaim investment after TGE" without the awareness of other investors. It is reported that Berachain has secured at least $142 million in funding, and in the last round of financing, its token was valued at $1.5 billion. This financing round was co-led by Framework Ventures and Nova Digital Fund, which is the crypto arm of the $340 billion hedge fund Brevan Howard. A former employee who wished to remain anonymous recalled that Berachain's co-founder, referred to as "Papa Bear," had pointed out that Brevan's involvement could enhance the project's legitimacy. However, the terms of the Series B offer were particularly favorable to Brevan's Nova Digital Fund. According to the documents, Berachain granted the fund the right to reclaim its $25 million Series B investment within one year after the token generation event on February 6, 2025. This clause indicates that, unlike traditional venture capital, Brevan's fund bears no risk on its principal: if the BERA token performs well, the fund can reap profits; if it performs poorly, the fund can demand a full refund. Four lawyers specializing in the crypto field stated that granting investors the right to a refund after TGE is extremely uncommon. Two of the lawyers pointed out that even if refund rights exist in token financing, they typically only activate if the project fails to issue tokens. If Nova Digital exercises its refund rights (the current token price is approximately 66% lower than the $3 investment price, and exercising the right makes financial sense), it may compel Berachain to raise $25 million in cash to repay its in-house investors. According to the project documents, the tokens purchased by Berachain investors have a one-year lock-up period. Therefore, if Nova exercises the refund right, it may forfeit its BERA allocation. It is currently uncertain whether Nova Fund's refund rights are legal—especially when other investors were not informed of this clause, and the deadline for Nova Digital to exercise its refund rights is set for February 6, 2026.