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- Berachain denies claims of a special $25 million refund for Nova Digital.
- Nova participated in Berachain’s Series B round under the same terms as all other investors.
- A side letter was signed to address contingencies, not to grant a refund.
A recent report alleging that Brevan Howard’s crypto-focused fund, Nova Digital, was granted the right to a $25 million refund on its Series B investment in Berachain has been debunked by the blockchain project’s founder. Berachain’s founder, known as Smokey The Bera, called the report “incomplete” and “inaccurate,” clarifying the terms of Nova’s investment and side agreements.
Clarifying the Series B Deal
On Monday, news outlet Unchained published a story claiming that Berachain had agreed to offer Nova Digital a refund option for its $25 million investment in Berachain’s Series B funding round, which took place in April 2024. The story cited a side letter, signed by Berachain’s general counsel Jonathan Ip and Nova’s director Carol Reynolds, stating that Nova could recoup “some or all” of its investment within a year of Berachain’s Token Generation Event (TGE), which occurred on February 6, 2025. This would reportedly allow Nova to receive a refund on its investment by February 6, 2026.
However, Smokey The Bera swiftly countered these claims, explaining that Nova participated in the Series B round under the same terms as all other investors, with no special provisions for a refund. He emphasized that Nova, a significant backer in Berachain, had made additional commercial arrangements to ensure liquidity in the event of Berachain’s token failure. This was a precautionary measure agreed upon when Nova led the Series B raise, a decision made months before the event took place.
Additional Arrangements, Not Special Treatment
Smokey further clarified that Nova’s involvement in the Series B round was purely on the same terms as every other investor, and the side letter in question was not intended to secure special treatment. The side letter addressed a scenario where Berachain’s token did not launch or get listed as expected, in which case Nova’s locked BERA tokens would not be eligible as part of its liquid strategy. Smokey explained that Nova requested the provision to protect its investment in case of token failure but reassured that the terms were standard within the industry and not exclusive.
Moreover, Nova has shown strong commitment to Berachain, holding both locked and additional BERA tokens purchased from the open market. Despite the challenging altcoin market, Nova continues to increase its exposure to BERA tokens, reinforcing its long-term confidence in the project.
Also Read: Berachain Recovers $12.8M After Balancer Hack — HONEY Operations Resume Today
The Future of BERA Tokens
The BERA token, which launched in February 2025, has experienced a dramatic price decline, falling 93% from its peak of $14.83 to a current price of $1.05. Despite the token’s struggles, Berachain remains focused on its goals, with Nova playing a crucial role as one of the largest token holders and liquidity providers.
In conclusion, while the initial report painted a picture of a refund arrangement, Berachain’s founder has provided clarity that Nova’s investment is not subject to special terms. The complex nature of the commercial agreements, while not unusual in venture capital, underscores the importance of transparent communication between blockchain projects and their investors.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
