Berachain’s $25M Refund Clause Sparks Legal and Ethical Concerns
Berachain, a blockchain project embroiled in controversy, faces scrutiny over a secret refund right granted to Brevan Howard's Nova Digital fund. The $25 million Series B investment comes with an unusual clause allowing full or partial repayment until February 2026—a safeguard not extended to retail participants.
The arrangement creates asymmetric risk exposure as BERA tokens plummet and ecosystem development stalls. Legal experts question whether such preferential terms violate investor protection principles, particularly when ordinary backers bear the brunt of losses.
Documents obtained by Unchained reveal Nova Digital can reclaim capital up to one year post-TGE, a provision rarely seen in venture financing. This privileged position contrasts sharply with retail investors' vulnerability to the token's 72% decline since launch.
