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 agreed upon last November. 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 Howat personally receiving $10 million, which he allegedly claimed did not need to be repaid. The lawsuit accuses Howat and W3C of engaging in a deliberate campaign to evade closing the transaction, including attempting to misappropriate millions of dollars from a subsidiary, falsifying documents, and making unauthorized changes to the company's leadership. Howat has yet to respond to requests for comment.
The W3C subsidiaries, Baanx and Monovate, were involved in the Crypto Life digital asset cards business, which collaborated with major players like Mastercard and MetaMask. 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 our position and anticipate a swift resolution.'