Exodus Movement, a publicly traded cryptocurrency company, has initiated legal action 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 last November. The lawsuit, which was filed in the Delaware Court of Chancery, aims to compel Howat to fulfill his obligations as outlined in the November 24, 2025 Stock Purchase Agreement. As part of the initial agreement, Exodus provided W3C with $80 million in loans, with an additional $10 million given directly to Howat, who has since claimed that these loans do not need to be repaid, as stated 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 manipulation of documents and the unauthorized dismissal of key personnel. In response to the allegations, Exodus CEO and Co-founder JP Richardson stated, 'We have a binding agreement in place with W3C and expect it to be fully honored. We are confident in our position and anticipate a swift resolution.'