Exodus Movement, a publicly traded 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 of W3C that was agreed upon in November last 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 Howat personally receiving $10 million, which he later claimed did not need to be repaid, according to 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 alleged misappropriation of millions of dollars from a subsidiary, falsifying documents filed with government authorities, and improperly dismissing and replacing 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're confident in the path forward and anticipate a swift resolution.'