In a bid to complete its $175 million acquisition of W3C, cryptocurrency firm Exodus Movement has taken the company and its CEO, Garth Howat, to court. The lawsuit, filed in the Delaware Court of Chancery, seeks to compel Howat to adhere to the terms of the November 24, 2025 Stock Purchase Agreement.
Upon signing the deal, Howat and W3C received $80 million in loans from Exodus, with $10 million allocated to Howat personally. However, the lawsuit claims that Howat has since asserted that these loans do not need to be repaid. The lawsuit accuses Howat and W3C of engaging in a deliberate campaign to avoid completing the transaction, citing actions such as the alleged misappropriation of millions of dollars from a subsidiary, falsification of documents, and unauthorized dismissal of key personnel.
Exodus CEO JP Richardson stated, 'We have a binding agreement with W3C and expect it to be fully honored. We're confident in the path forward and anticipate a swift resolution.'