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 acquisition of W3C for $175 million, as agreed upon in November of the previous year. The lawsuit, filed in the Delaware Court of Chancery, seeks to compel Howat to fulfill his obligations under the Stock Purchase Agreement dated November 24, 2025. Upon signing the agreement, 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, according to the lawsuit.
The lawsuit alleges that Howat and W3C are attempting to renege on their commitment to complete the sale, citing a pattern of reckless and improper behavior. This includes the alleged manipulation of documents, the unauthorized dismissal of key personnel, and the appointment of new directors without justification. Exodus CEO and Co-founder JP Richardson stated, 'We have a binding agreement in place with W3C and expect it to be honored in full.
We are confident in our position and anticipate a prompt resolution.'