ChainThink news, November 25, according to unchainedcrypto, Berachain granted one of its Series B funding lead investors, Brevan Howard, the right to have its investment returned risk-free after the TGE, without the knowledge of other investors.

It is reported that Berachain has raised at least $142 million in total funding, and its token was valued at $1.5 billion in the previous round of funding. This round was co-led by Framework Ventures and the Nova Digital Fund, which is part of Brevan Howard's cryptocurrency division, a $34 billion hedge fund.

A former employee who requested anonymity recalled that one of Berachain's co-founders, known under the alias "Papa Bear," pointed out that Brevan's involvement could enhance the project's legitimacy. However, the Series B terms were particularly favorable to Brevan's Nova Digital Fund.

According to documents, Berachain granted the fund the right to redeem 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 principal is entirely risk-free: if the BERA token performs well, the fund can enjoy the gains; if it performs poorly, the fund can request a full refund.

Four lawyers specializing in the crypto space stated that it is extremely rare for projects to grant investors the right to refund after the TGE. Two of them noted that even if refund rights appear in token sales, they are typically only triggered if the project fails to issue tokens.

If Nova Digital exercises its refund right (the current token price has fallen about 66% from the $3 investment price, making it financially logical to exercise the right), it could force Berachain to raise $25 million in cash to repay its own investors. According to project documents, the tokens purchased by Berachain investors are subject to a one-year lock-up period, so if Nova exercises its refund right, it may forfeit its BERA allocation quota.

It is currently unclear whether Nova's refund right is legal—especially when other investors were not informed of this clause. The deadline for Nova Digital to exercise its refund right is February 6, 2026.