Exodus Movement, a listed cryptocurrency company, has initiated legal action against W3C and its CEO, Garth Howat, in an effort to finalize the $175 million acquisition agreed upon in November of the previous year. The lawsuit, filed in the Delaware Court of Chancery, seeks to compel Howat to fulfill his obligations as outlined in the Stock Purchase Agreement dated November 24, 2025. Upon signing the deal, Howat and W3C received $80 million in loans from Exodus, with $10 million allocated directly to Howat, who subsequently claimed that repayment was not necessary, as alleged in the lawsuit.
The lawsuit asserts that Howat and W3C are attempting to evade their commitment to the sale, having engaged in actions such as falsifying documents, misappropriating funds from a subsidiary, and making unauthorized changes to the company's leadership. In response to the allegations, Exodus CEO and Co-founder JP Richardson stated, 'We have a binding agreement in place with W3C and expect it to be fully respected.
We are confident in our position and anticipate a prompt resolution.'