Exodus Movement, a publicly traded cryptocurrency company, has filed a lawsuit 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 last November. The lawsuit, submitted to the Delaware Court of Chancery, seeks to compel Howat to adhere to the terms outlined in 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 obligations, stating, 'The defendants are engaged in a deliberate and reckless campaign to avoid completing the transaction, despite having a binding agreement in place.' The lawsuit further alleges that they have attempted to misappropriate funds from a subsidiary, falsified documents, and improperly dismissed and replaced key personnel.
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 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 our position and anticipate a swift resolution.'