Exodus Movement, a listed cryptocurrency company, has taken 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 last November. The lawsuit, filed in the Delaware Court of Chancery, seeks to compel Howat to adhere to the obligations outlined in 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, who subsequently claimed that repayment was not necessary, as alleged in the lawsuit.
The lawsuit accuses Howat and W3C of engaging in a deliberate campaign to evade completing the transaction, citing actions such as attempting to misappropriate millions of dollars from a subsidiary, falsifying documents, 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 with W3C and expect it to be fully honored. We're confident in the path forward and anticipate a swift resolution.'