The privacy policy of Berachain has been exposed, and Brevan Howard's $25 million investment can be refunded after the TGE, which other investors are not aware of

Berachain granted Brevan Howard, one of the lead investors in its Series B financing, the right to a risk-free refund of its investment after the TGE, without the knowledge of other investors. It is reported that Berachain has raised at least $142 million in total, with its token valued at $1.5 billion in the last round of financing, which was co-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 involvement could enhance the project's legitimacy. However, the terms of the Series B financing are particularly favorable to Brevan's Nova Digital fund. According to documents, Berachain granted the fund the right to refund its $25 million Series B investment for up to one year after the token generation event on February 6, 2025.

This clause means that unlike traditional venture capital, the principal of the Brevan fund carries zero risk: if the BERA token performs well, the fund can enjoy the 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 the TGE is extremely rare. Two of the lawyers noted that even when refund rights appear in token financing, they typically only trigger if the project fails to issue tokens.

If Nova Digital exercises its refund right (the current token price has dropped about 66% from the $3 investment price, making exercising the right financially logical), it could force Berachain to raise $25 million in cash to repay its investors. According to project documents, the tokens purchased by Berachain investors have a one-year lock-up period, so if Nova exercises its refund right, it may forfeit its BERA allocation. It remains unclear whether Nova's refund right is legal—especially since other investors were not informed of this clause. The deadline for Nova Digital to exercise its refund right is February 6, 2026.