Exodus Movement, a publicly traded cryptocurrency company, has initiated legal proceedings against W3C 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 $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 attempting to evade their commitments to the acquisition, citing a series of actions including the alleged misappropriation of funds from a subsidiary, falsification of documents, and unauthorized changes to the company's leadership structure.
In response to the allegations, 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.'