In a significant development, Exodus Movement, a listed cryptocurrency firm, has initiated legal proceedings against W3C and its CEO, Garth Howat, to ensure the completion of its $175 million acquisition of W3C, as agreed upon in November last year. The lawsuit, filed in the Delaware Court of Chancery, seeks to compel Howat to fulfill his obligations under the November 24, 2025 Stock Purchase Agreement.
Upon signing the deal, Howat and W3C received $80 million in loans from Exodus, with Howat personally receiving $10 million, which he later claimed did not need to be repaid, according to the lawsuit. The lawsuit alleges that Howat and W3C are attempting to renege on their commitment to complete the transaction, engaging in a series of improper actions, including attempting to misappropriate funds from a subsidiary, falsifying documents, and making unauthorized changes to the company's leadership. Exodus CEO and Co-founder, JP Richardson, stated that the company expects the binding agreement to be fully honored and is confident in a swift resolution.