Exodus Movement, a publicly traded cryptocurrency company, has filed a lawsuit against W3C, the parent company of Baanx and Monovate, and its CEO Garth Howat, in an effort to complete the $175 million acquisition agreed upon in November last year. 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 $10 million allocated to Howat personally, who allegedly claimed the loans did not need to be repaid.
The lawsuit accuses Howat and W3C of engaging in a deliberate campaign to avoid completing the transaction, citing attempts to misappropriate millions of dollars from a subsidiary, falsify documents, and dismiss boards of directors and key executives in violation of the binding agreement. Howat has not responded to requests for comment. The W3C companies, 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, anticipating a swift resolution.'