Exodus Movement, a publicly traded cryptocurrency company, has initiated legal proceedings against W3C, the parent company of Baanx and Monovate, and its CEO, Garth Howat, in an effort to finalize the $175 million acquisition of W3C that was agreed upon in November of the previous year. The lawsuit, which was filed in the Delaware Court of Chancery, seeks to compel Howat to fulfill his obligations under 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 claimed that these loans did not need to be repaid.
The lawsuit alleges that Howat and W3C are engaged in a deliberate and improper attempt to evade completing the transaction, which was previously agreed upon in a binding agreement. The lawsuit further states that they have attempted to misappropriate millions of dollars from one of their own subsidiaries, falsified documents filed with government authorities, and improperly dismissed and replaced key personnel. Howat has yet to respond to a request for comment. The W3C companies, Baanx and Monovate, were previously involved in the Crypto Life digital asset cards business, which collaborated with notable companies such as Mastercard and MetaMask.
Exodus CEO and Co-founder, JP Richardson, commented, '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.'