In a significant development, listed cryptocurrency company Exodus Movement (EXOD) has initiated legal proceedings against W3C, the parent entity of crypto-focused companies Baanx and Monovate, as well as its CEO Garth Howat, in an effort to finalize the $175 million acquisition agreed upon in November of the previous year. The lawsuit, submitted to the Delaware Court of Chancery, seeks to compel Howat to adhere to the obligations outlined in the November 24, 2025 Stock Purchase Agreement. Upon inking the deal, Howat and W3C received loans totaling $80 million from Exodus, with Howat personally receiving $10 million, which he later claimed did not require repayment, as alleged in the lawsuit.
The lawsuit alleges that Howat and W3C are engaged in a deliberate and improper attempt to evade completing the transaction. They have attempted to misappropriate funds from a subsidiary, falsified documents submitted to government authorities, and improperly dismissed and replaced key personnel, contrary to the terms of the binding agreement. Howat has yet to respond to requests for comment.
Notably, W3C's subsidiaries Baanx and Monovate were instrumental in the Crypto Life digital asset cards business, which collaborated with prominent players like 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 the path forward and anticipate a swift resolution.'