Berachain's Refund Policy Balances Safeguarding Investors With Ensuring Project Longevity
- Berachain co-founder denies claims of a $25M refund clause in its Series B funding, calling reports "inaccurate and incomplete." - The clause allows Nova Digital to reclaim its $25M investment until February 2026, triggering legal criticism for its "highly unusual" post-TGE refund terms. - Legal experts warn the clause may violate MFN rights, as undisclosed terms could disadvantage other investors while shielding Nova from downside risk. - The $100M Series B deal at $1.5B valuation has intensified debate
Berachain's co-founder has labeled reports about a $25 million refund clause linked to its Series B funding as "misleading and lacking context," as scrutiny mounts over the layer-1 blockchain's financing arrangements. The debate focuses on a provision allowing Brevan Howard's Nova Digital fund to reclaim its full investment up until February 6, 2026, which is one year after Berachain's token generation event (TGE).
This clause has faced significant pushback from legal professionals, who characterize such post-TGE refund provisions as "extremely rare" in token fundraising deals.
The agreement's terms may also present legal challenges.
The Series B funding round, which was co-led by Framework Ventures and Nova Digital,
Brevan Howard Digital and Nova co-founder Ashwin Ramachandran chose not to respond
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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