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 last year. The lawsuit, filed in the Delaware Court of Chancery, seeks to compel Howat to fulfill his obligations as outlined in the November 24, 2025 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, according to the lawsuit. The lawsuit alleges that Howat and W3C are attempting to renege on the sale of W3C to Exodus, despite having a binding agreement in place.
It also accuses them of attempting to misappropriate millions of dollars from one of their subsidiaries, falsifying documents, and making unauthorized changes to the boards of directors and executive teams. Howat has yet to respond to requests for comment.
W3C's subsidiaries, Baanx and Monovate, were involved in the Crypto Life digital asset cards business, which collaborated with major companies 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 our position and anticipate a swift resolution.'