Exodus Movement, a publicly traded cryptocurrency company, has initiated legal action against W3C and its CEO, Garth Howat, in an effort to complete a $175 million acquisition agreed upon last November. The lawsuit, filed in the Delaware Court of Chancery, seeks to compel Howat to adhere to the terms outlined in the November 24, 2025 Stock Purchase Agreement. Upon signing the deal, W3C and Howat 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 attempting to renege on their obligations, engaging in a 'blatant, reckless, and improper campaign' to avoid completing the transaction. The lawsuit further states that they have attempted to misappropriate millions of dollars from a subsidiary, falsified documents, and improperly dismissed and replaced key personnel. Howat has not responded to requests for comment. W3C's subsidiaries, Baanx and Monovate, were involved in the Crypto Life digital asset cards business, which collaborated with major companies like 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're confident in the path forward and anticipate a swift resolution.'