Exodus Movement, a publicly traded cryptocurrency company, has initiated a lawsuit against W3C, the parent company of Baanx and Monovate, and its CEO Garth Howat, in an effort to complete the previously agreed-upon $175 million acquisition of W3C. The lawsuit, 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 an additional $10 million allocated to Howat personally.
However, according to the lawsuit, Howat claims that these loans do 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, citing actions such as the falsification of documents filed with government authorities and the unauthorized dismissal of key personnel. 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.'