The founder of Berachain poured cold water on a recent report that claimed one of its main supporters in the Series B round received a $25 million refund right, stating that the description was "incomplete" and "inaccurate."
Unchained reported on Monday that Berachain provided Nova Digital, a fund focused on cryptocurrency under Brevan Howard, with a one-year refund right concerning its $25 million investment in Berachain's Series B financing in April 2024.
Unchained also provided a letter signed by Berachain's General Counsel Jonathan Ip and Nova's director Carol Reynolds, stating that Nova could reclaim "part or all" of its investment "within 12 months" after the Berachain token generation event (TGE).
Berachain's TGE or token minting occurred on February 6, which means Nova could reportedly receive a refund on its investment before February 6, 2026.
The anonymous founder of Berachain, Smokey The Bera, stated on Monday that the report was "inaccurate and incomplete," and that Brevan's "investment involves several complex business agreements, but the documents they used for the Series B financing are the same as those for all other investors."
Smokey stated, "Brevan Howard co-led our Series B financing a year ago through its Abu Dhabi office, using Nova as a new pure liquidity tool, under the same terms as all other investors. Nova had approached Berachain a few months prior to lead this round of financing."
Smokey mentioned that Nova requested a term "to guard against Berachain's failure to complete the TGE and listing."
They stated that if this situation occurred, the locked Berachain (BERA) tokens purchased by Nova would "not meet the qualified investment standards of Nova's liquidity strategy."
Smokey added, "Therefore, we signed the letter published in the article and had Nova commit to additional business arrangements, including agreements to provide liquidity on the network, which would only be possible after the launch."
They stated that the letter was not "to reach a deal with a party that was originally uninterested or to guard against losses after the launch," and added that it also "generally has precedents."
Smokey also emphasized that Nova is one of the largest token holders of Berachain and a liquidity provider, holding locked BERA obtained in the Series B financing and additional BERA purchased on the open market.
They added, "Despite operating a liquidity fund in a harsh altcoin environment, they have increased their BERA exposure over time."
The reporter has contacted Smokey and the Berachain Foundation via X for comments. Brevan Howard did not respond to requests for comments outside of normal business hours.
According to CoinGecko data, the BERA token has dropped 93% from its peak of $14.83 reached at its launch in February, currently trading at $1.05, up 3.2% on the day.
Related: Anthony Pompliano: Wall Street Shouldn't Be Concerned About Bitcoin (BTC) Volatility
Original: “Berachain Claims Report on VC Refund Agreement is ‘Incomplete’”
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