Berachain grants a special refund right of $25 million to a certain fund, or violates SEC's anti fraud requirements Odaily Planet Daily News: According to documents obtained by Unchained, Berachain has provided a refund option for its $25 million investment to Nova Digital, a cryptocurrency focused fund under Brevan Howard, one of its Series B lead investors. The validity period of this right is one year after the Berachain Token Generation Event (TGE, which occurred on February 6, 2025). This refund clause means that Nova Digital's fund assumes no risk on its principal: if the BERA token performs well, the fund will receive a return; If the token performs poorly, the fund can request a refund of the investment amount. Four lawyers specializing in the field of encryption stated that it is "highly unusual" for the project to grant refund rights to investors after granting TGE. According to the documents, Nova Digital Fund invested $25 million to acquire BERA tokens at a price of $3 per token as part of Series B financing. Other investors include Polychain, Hack VC, Arrington Capital, and Tribe Capital. The refund agreement was stipulated in a side letter signed on March 5, 2024. The current trading price of BERA token is about $1.02, which is about 66% lower than Nova Digital's investment price of $3. If Nova Digital exercises its refund right (with a deadline of February 6, 2026), Berachain may need to pay $25 million in cash to repay the investment, which could lead to liquidity issues. According to the project's documents, the tokens purchased by investors have a one-year lock up period, so Nova exercising its refund right may waive its BERA allocation. Two lawyers familiar with capital market regulations stated that it is uncertain whether Berachain has a legal obligation to disclose the refund terms to other Series B investors. Two anonymous investors stated that Berachain did not inform them that any other investors had refund terms. Smokey the Bera, anonymous co-founder of Berachain, stated in an email statement that "Unchained's report on this matter is neither accurate nor complete. Brevan Howard remains one of Berachain's largest investors. Their investment involves multiple complex commercial agreements, but they participated in Series B financing using the same documents as all other investors