Exodus Movement, a listed cryptocurrency company, has initiated legal proceedings 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, currently underway in the Delaware Court of Chancery, seeks to compel Howat to adhere to the obligations 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 asserts that Howat and W3C are engaged in a deliberate campaign to evade completing the transaction, despite having entered into a binding agreement.
It further 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 previously 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 path forward and anticipate a swift resolution.'