In a recent development, cryptocurrency firm Exodus Movement (EXOD) has taken W3C, the parent company of crypto specialists Baanx and Monovate, and its CEO Garth Howat to court. The lawsuit, filed in the Delaware Court of Chancery, aims to enforce the completion of Exodus' $175 million acquisition of W3C, which was agreed upon in November last year.
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, they claim the loans do not need to be repaid.
The lawsuit accuses Howat and W3C of attempting to renege on the binding agreement, engaging in improper conduct such as falsifying documents and dismissing key personnel. Exodus' CEO and Co-founder, JP Richardson, expressed confidence in the outcome, stating that the company expects the agreement to be honored in full. The case is ongoing, with Howat yet to respond to requests for comment.
W3C's subsidiaries, Baanx and Monovate, were previously involved in the Crypto Life digital asset cards business, collaborating with prominent companies like Mastercard and MetaMask.