Exodus Movement, a publicly traded cryptocurrency company, has initiated legal proceedings against W3C, the parent company of cryptocurrency payment specialists Baanx and Monovate, and its CEO, Garth Howat, in an effort to finalize the $175 million acquisition of W3C 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 November 24, 2025 Stock Purchase Agreement. Upon signing the agreement, 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 engaged in a deliberate and improper attempt to evade completing the transaction, citing actions such as the falsification of documents submitted to government authorities and the unauthorized dismissal and replacement of key personnel. Howat has yet to respond to requests for comment.
W3C's subsidiaries, Baanx and Monovate, were instrumental in the development of the Crypto Life digital asset cards business, which collaborated with prominent industry players such as Mastercard and MetaMask. JP Richardson, CEO and Co-founder of Exodus, stated, 'We have a binding agreement in place with W3C and expect it to be fully honored. We are confident in our position and anticipate a prompt resolution.'