Exodus Movement, a publicly traded cryptocurrency company, has initiated a lawsuit against W3C, the parent entity of 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. The lawsuit, filed in the Delaware Court of Chancery, seeks to compel Howat to adhere to the obligations outlined in the Stock Purchase Agreement. Following the signing of 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 attempt to evade completing the transaction, citing actions such as the misappropriation of millions of dollars from a subsidiary, falsification of documents, and unauthorized dismissal of key personnel.
In response to the allegations, Howat has not provided an immediate comment. The W3C subsidiaries, Baanx and Monovate, were instrumental in the development of the Crypto Life digital asset cards business, which collaborated with prominent entities like Mastercard and MetaMask. Exodus CEO and Co-founder, JP Richardson, stated, 'We have a binding agreement in place with W3C and expect it to be fully honored. We are confident in our position and anticipate a prompt resolution.'