Exodus Movement, a publicly traded cryptocurrency company, has filed a lawsuit against W3C, the parent company of 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 deal, Howat and W3C received $80 million in loans from Exodus, with $10 million allocated to Howat personally. However, the lawsuit claims that Howat has since declared the loans do not need to be repaid.
The lawsuit accuses Howat and W3C of engaging in a deliberate and improper campaign to avoid completing the transaction, which was previously agreed upon in a binding agreement. The lawsuit further alleges that they have attempted to misappropriate millions of dollars from one of their subsidiaries, falsified documents filed with government authorities, and improperly dismissed and replaced key personnel. In response to the allegations, Exodus CEO and Co-founder JP Richardson 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.'