TL;DR

Recent reporting claims that Nova Digital holds a potential $25 million refund right tied to its Series B investment.
Berachain co-founder Smokey the Bera rejects the allegation, arguing that the report omits critical contractual details.
Meanwhile, the BERA token trades far below institutional entry prices, putting pressure on investors as the network works to regain momentum after a difficult market phase.

Berachain is facing scrutiny over its fundraising terms after published documents suggested that Nova Digital obtained a unique refund option linked to its Series B participation. Smokey the Bera strongly disputes the interpretation, insisting that the report misrepresents both the clause and Nova’s exposure to market risk. The controversy has attracted attention from traders, analysts, and regulatory observers who now monitor the chain’s financial agreements more closely.

Berachain Funding Debate and Transparency Claims

Smokey states that Nova Digital remains a major token holder and continues to support the project, even as it separates from Brevan Howard. He explains that the clause referenced in the report relates to regulatory compliance requirements, not price protection. According to Smokey, these mechanisms address eligibility issues around holding locked digital assets in certain institutional strategies, and do not shield investors from losses. 

He rejects the notion of unfair advantages and highlights his own market exposure, claiming he has taken seven-figure losses on secondary purchases of BERA, which he presents as proof of commitment. Smokey also emphasizes that Nova agreed to provide liquidity support for the network after launch, reinforcing that its role extends beyond speculative positioning. Supporters of Berachain argue that the project continues to attract institutional interest despite volatile market performance.

Dispute Over Refund Terms in the Series B Round

The original investigation alleges that other investors were not informed of Nova’s clause. Smokey counters that all participants signed the same documentation, denying that any exclusive benefits were granted. However, some backers cited in the report insist they were unaware of protections tied to Nova’s investment, extending the controversy over disclosures.

This dispute emerges while BERA trades significantly below its previous highs, affecting portfolios that entered the round at much higher valuations. Despite the downturn and a temporary network halt triggered by a protocol vulnerability, Berachain restored operations without user losses and has moved forward with initiatives to expand liquidity and strengthen the network.

Although disagreement persists regarding the alleged refund arrangement, Berachain maintains that it operates with commercial legitimacy and real market exposure from both leadership and institutional partners. 

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Filed under: News - @ November 25, 2025 1:27 pm