Exodus Movement, a listed cryptocurrency firm, has taken legal action against W3C and its CEO, Garth Howat, in a bid to finalize the $175 million acquisition of W3C, as agreed upon in November last year. 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. However, according to the lawsuit, Howat has since claimed that these loans do not need to be repaid. The lawsuit alleges that Howat and W3C are attempting to evade their commitment to complete the transaction, citing a series of improper actions, including the falsification of documents and the unauthorized 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 fully honored. We are confident in our position and anticipate a swift resolution.'