Cryptocurrency firm Exodus Movement has filed a lawsuit against W3C, the parent company of Baanx and Monovate, and its CEO Garth Howat, in an effort to finalize the $175 million acquisition that was 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 Stock Purchase Agreement dated November 24, 2025. Upon signing the deal, Howat and W3C received $80 million in loans from Exodus, with $10 million allocated to Howat personally, who subsequently claimed that repayment was not necessary, as alleged in the lawsuit. The lawsuit accuses Howat and W3C of engaging in a deliberate and improper campaign to avoid completing the transaction, citing attempts to misappropriate millions of dollars from a subsidiary, falsify documents, and make unauthorized changes to the company's leadership.
In response to the allegations, Exodus CEO JP Richardson stated, 'We have a binding agreement with W3C and expect it to be fully honored. We are confident in the outcome and anticipate a swift resolution.'