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 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. As part of the initial deal, Exodus provided W3C with loans totaling $80 million, with an additional $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 attempting to renege on their commitment to complete the sale, citing a pattern of deceitful behavior including the backdating of documents and the unjust dismissal of key personnel. Exodus CEO and Co-founder JP Richardson expressed confidence in the binding agreement and anticipated a swift resolution. W3C's subsidiaries, Baanx and Monovate, were previously involved in the Crypto Life digital asset cards business, which collaborated with major industry players such as Mastercard and MetaMask.