Exodus Movement, a publicly traded cryptocurrency company, has initiated legal action 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. A lawsuit filed in the Delaware Court of Chancery seeks to compel Howat to fulfill his obligations as 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 accuses Howat and W3C of engaging in a deliberate and improper campaign to avoid completing the transaction, including attempting to misappropriate millions of dollars from a subsidiary, falsifying documents, and making unauthorized changes to the company's leadership. In response to the allegations, Howat has yet to comment. The W3C subsidiaries, Baanx and Monovate, were previously involved in the Crypto Life digital asset cards business, which collaborated with major industry players such as 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.'