Exodus Movement, a publicly traded cryptocurrency company, has initiated legal action against W3C, the parent company of cryptocurrency payment specialists 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. A 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 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 engaging in a deliberate and improper attempt to evade completing the transaction, citing actions such as the attempted misappropriation of millions of dollars from a subsidiary, falsifying documents filed with government authorities, and unfairly dismissing and replacing key personnel.
Howat has yet to respond to a request for comment. W3C's subsidiaries, Baanx and Monovate, were previously involved in the Crypto Life digital asset cards business, which collaborated with notable 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 the path forward and anticipate a swift resolution.'