Exodus Movement, a publicly traded cryptocurrency company, has initiated a lawsuit 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 agreed upon in November of the previous year. A 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 deal, Howat and W3C received loans totaling $80 million 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 'defendants Garth Howat and W3C are engaged in a blatant, reckless, and improper campaign to escape closing a transaction for the sale of W3C to Exodus that they had promised to complete in a binding agreement.' It further accuses them of attempting to misappropriate millions of dollars from one of their subsidiaries, falsifying documents filed with government authorities, and improperly dismissing and replacing board members and executives. 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 players 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.'