Exodus Movement, a publicly traded cryptocurrency firm, 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 last November. The 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 $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 evade their commitment to the acquisition, stating, "The defendants are engaged in a flagrant and improper campaign to avoid completing the transaction, despite having entered into a binding agreement." It further accuses them of attempting to misappropriate millions of dollars from a subsidiary, falsifying documents, and making unauthorized changes to the company's leadership.
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 in place and expect it to be upheld. We are confident in our position and anticipate a prompt resolution."