{"id":91387,"date":"2025-11-25T14:32:18","date_gmt":"2025-11-25T11:32:18","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=91387"},"modified":"2025-11-25T14:36:38","modified_gmt":"2025-11-25T11:36:38","slug":"report-berachain-gave-brevan-howard-an-exclusive-25m-refund-right","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/report-berachain-gave-brevan-howard-an-exclusive-25m-refund-right\/","title":{"rendered":"Report: Berachain gave Brevan Howard an exclusive $25m refund right"},"content":{"rendered":"

The blockchain project Berachain<\/a> included in its agreement with Nova Digital \u2014 a Brevan Howard unit \u2014 an exclusive provision granting a $25 million refund of its investment within a year of the BERA token launch<\/a>, Unchained reported.\u00a0<\/p>\n

Such terms depart from classic venture funding. The arrangement effectively insulated the firm\u2019s capital from risk: if the coin rises, Nova Digital profits; if it falls, the fund can simply recover its money.\u00a0<\/p>\n

Lawyers agreed that a post-launch refund right is rare. Two experts said such clauses usually apply only in one case: when a project fails to issue a token on time.<\/p>\n

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\u201cThe only reasonable reason a company might agree to such an arrangement with a lead investor is the ability to use the name of a well-known fund to attract the rest of the round. When other investors see that a reputable organisation is leading the deal, it increases their trust and willingness to invest,\u201d commented MetaLeX Labs co-founder Gabriel Shapiro.<\/em><\/p>\n<\/blockquote>\n

The only known precedent for such a refund right in tokens was the Flying Tulip project, launched by a co-founder of Sonic<\/a> (formerly Fantom) and DeFi<\/a> developer Andre Cronje. During a $200 million funding round<\/a>, all investors without exception were offered the option to redeem their investment.\u00a0<\/p>\n

Two anonymous Berachain investors confirmed they were not told about special terms for Brevan Howard.<\/p>\n

Should Nova Digital exercise the right (which would be logical \u2014 the BERA price has plunged 66% from the agreed $3 level), Berachain would have to find cash for the refund. According to the project\u2019s terms<\/a>, investor tokens are locked for one year.<\/p>\n

\"image\"
Berachain chart. Source: CoinGecko<\/a>.\u00a0<\/figcaption><\/figure>\n

Rebuttal\u00a0<\/h2>\n

The Berachain founder who goes by Smokey The Bera denied Unchained\u2019s report, calling journalist Jack Kubinec\u2019s investigation \u201ccommissioned,\u201d \u201cincomplete\u201d and \u201cinaccurate.\u201d\u00a0<\/p>\n

\n

Bm Folks,<\/p>\n

I wanted to put something out here to set the story straight in light of the recent hit piece. I also didn\u2019t want to write a knee-jerk response without getting feedback from our legal team (given allegations made) and some of our largest stakeholders who have been\u2026<\/p>\n

\u2014 Smokey The Bera \ud83d\udc3b\u26d3 (@SmokeyTheBera) November 25, 2025<\/a><\/p><\/blockquote>\n