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 $175 million acquisition agreed upon in November 2025. The lawsuit, filed in the Delaware Court of Chancery, aims to compel Howat to fulfill his obligations under the Stock Purchase Agreement dated November 24, 2025. Following the signing of the deal, Exodus provided W3C with $80 million in loans, with $10 million allocated directly to Howat, who allegedly claimed the loans did not need to be repaid. The lawsuit accuses Howat and W3C of engaging in a deliberate campaign to evade completing the transaction, including attempting to misappropriate millions of dollars from a subsidiary, falsifying documents, and improperly dismissing key personnel.
In response to the allegations, Exodus CEO and Co-founder JP Richardson stated that the company expects the binding agreement to be honored in full and anticipates a swift resolution to the dispute.