Exodus Movement, a listed cryptocurrency firm, has initiated legal action against W3C, the parent company of Baanx and Monovate, and its CEO, Garth Howat, in an effort to finalize the $175 million acquisition agreed upon in November of the previous year. A lawsuit has been filed in the Delaware Court of Chancery 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, as per the lawsuit.
The lawsuit alleges that Howat and W3C are attempting to evade their commitment to the acquisition, having engaged in a series of improper actions, including the backdating of documents and the dismissal of key personnel. 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 upheld. We are confident in our position and anticipate a prompt resolution.'