Exodus Movement, a listed 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 in November last year. The lawsuit, submitted to 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 $80 million in loans from Exodus, with Howat personally receiving $10 million, which he later claimed did not need to be repaid, as stated in the lawsuit.
The lawsuit alleges that Howat and W3C are engaged in a deliberate attempt to evade completing the transaction, having accepted significant loans and attempting to manipulate documents and dismiss key personnel in contravention of the binding agreement. In response to the allegations, Exodus CEO and Co-founder JP Richardson expressed confidence in the binding agreement and anticipated a swift resolution, stating, 'We have a binding agreement with W3C and expect it to be fully honored.'