Exodus Movement, a publicly traded cryptocurrency company, has initiated a lawsuit against W3C, the parent company of cryptocurrency payment specialists Baanx and Monovate, and 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 adhere to the obligations outlined in the November 24, 2025 Stock Purchase Agreement.
Upon signing the deal, Howat and W3C received loans totaling $80 million from Exodus, with Howat personally receiving $10 million, which he later claimed did not need to be repaid, as alleged in the lawsuit. The lawsuit accuses Howat and W3C of engaging in a deliberate and improper attempt to evade completing the transaction, citing actions such as the misappropriation of millions of dollars from a subsidiary, falsification of documents, and unauthorized dismissal and replacement of key personnel.
Howat has not responded to requests for comment. The W3C subsidiaries, Baanx and Monovate, were involved in the Crypto Life digital asset cards business, which collaborated with major companies 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.'