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 last November. The lawsuit, filed in the Delaware Court of Chancery, aims to compel Howat to fulfill his obligations under the November 24, 2025 Stock Purchase Agreement. Upon signing the deal, Howat and W3C received $80 million in loans from Exodus, with $10 million allocated to Howat personally. However, the lawsuit claims that Howat has since declared that these loans do not need to be repaid.
The lawsuit alleges that Howat and W3C are engaged in a deliberate and improper campaign to avoid completing the transaction, citing actions such as the falsification of documents filed with government authorities and the unauthorized dismissal of key personnel. In response to the lawsuit, 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.'