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. The lawsuit, submitted to the Delaware Court of Chancery, seeks to compel Howat to adhere to the obligations outlined in the November 24, 2025 Stock Purchase Agreement. Following the signing of 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 stated in the lawsuit.
The lawsuit alleges that Howat and W3C are engaging in a deliberate and improper attempt to evade completing the transaction, having accepted significant funding from Exodus. The defendants are accused of attempting to misappropriate millions of dollars from one of their subsidiaries, falsifying documents, and making unauthorized changes to the leadership of key entities. 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.'