Exodus Movement, a publicly traded cryptocurrency company, has initiated legal action against W3C, the parent company of Baanx and Monovate, and its CEO, Garth Howat, in an effort to finalize the acquisition of W3C for $175 million, as 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 under the Stock Purchase Agreement dated November 24, 2025.
Upon signing the agreement, Howat and W3C received $80 million in loans from Exodus, with $10 million allocated directly to Howat, who subsequently claimed that the loans did not need to be repaid, as alleged in the lawsuit. The lawsuit asserts that Howat and W3C are attempting to evade their commitment to complete the transaction, citing a pattern of reckless and improper behavior. This includes the alleged misappropriation of millions of dollars from a subsidiary, 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.
The W3C subsidiaries, Baanx and Monovate, were instrumental in the development of the Crypto Life digital asset cards business, which collaborated with prominent companies such as Mastercard and MetaMask. Exodus CEO and Co-founder, JP Richardson, stated, 'We have a binding agreement with W3C and expect it to be fully honored.
We are confident in our position and anticipate a swift resolution.'