In a significant development, cryptocurrency firm Exodus Movement (EXOD) has initiated legal proceedings against W3C, the parent company of prominent crypto card and payments specialists Baanx and Monovate, as well as 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 $80 million in loans 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 asserts that "Defendants Garth Howat and W3C are engaged in a blatant, reckless, and improper campaign to escape closing a transaction for the sale of W3C to Exodus that they had promised to complete in a binding agreement." It further accuses them of attempting to misappropriate millions of dollars from a subsidiary, falsifying documents filed with government authorities, and improperly dismissing and replacing key personnel.
Howat has yet to respond to requests for comment. Notably, W3C's subsidiaries Baanx and Monovate were instrumental 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’re confident in the path forward and anticipate a swift resolution."