Exodus Movement, a publicly traded cryptocurrency company, has initiated legal action against W3C, the parent company of Baanx and Monovate, and its CEO, Garth Howat, in an effort to finalize the acquisition of W3C, valued at $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 November 24, 2025 Stock Purchase Agreement. Upon signing the deal, Howat and W3C received loans totaling $80 million from Exodus, with $10 million allocated to Howat personally, who subsequently claimed that repayment was not necessary, as alleged in the lawsuit.
The lawsuit accuses Howat and W3C of engaging in a deliberate and improper attempt to evade completing the transaction, citing actions such as the manipulation of documents filed with government authorities and the unauthorized dismissal of key personnel. In response to the allegations, 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.'