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 of the previous 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.
Upon signing the deal, Howat and W3C received $80 million in loans from Exodus, with $10 million allocated directly to Howat, who has since claimed that these loans are not repayable, according to the lawsuit. The lawsuit alleges that Howat and W3C are engaged in a deliberate and improper attempt to evade completing the transaction, citing actions such as the falsification of documents filed with government authorities and the unauthorized dismissal and replacement of key personnel.
In response to the allegations, 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."