Exodus Movement, a prominent cryptocurrency firm, has initiated legal action against W3C, the parent company of specialized crypto card and payment providers Baanx and Monovate, as well as its CEO, Garth Howat, in an effort to finalize the $175 million acquisition agreed upon in November of the previous year. 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 agreement, 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 obligations under the binding agreement, engaging in actions such as falsifying documents and improperly dismissing key personnel. In response to the situation, JP Richardson, CEO and Co-founder of Exodus, stated, 'We have a binding agreement with W3C and expect it to be fully honored.
We are confident in the path forward and anticipate a swift resolution.'