In a significant development, Exodus Movement (EXOD), a prominent cryptocurrency firm, has initiated legal proceedings against W3C, the parent company of specialized crypto card and payment providers Baanx and Monovate, as well as its CEO, Garth Howat. The lawsuit seeks to finalize the $175 million acquisition of W3C, which was agreed upon in November of the previous year. Following the signing of the deal, Howat and W3C received $80 million in loans from Exodus, with Howat personally receiving $10 million.
However, they have since claimed that these loans do not need to be repaid, as alleged in the lawsuit. The lawsuit accuses Howat and W3C of engaging in a deliberate and improper attempt to evade their obligations under the binding agreement. It also alleges that they have attempted to misappropriate millions of dollars from one of their subsidiaries, falsified documents submitted to government authorities, and improperly dismissed and replaced key personnel.
In response to a request for comment, Howat did not immediately provide a statement. Notably, W3C's subsidiaries, Baanx and Monovate, were instrumental in the development of the Crypto Life digital asset cards business, which collaborated with major industry players such as Mastercard and MetaMask.
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.'