Exodus Movement, a publicly traded cryptocurrency company, has filed a lawsuit against W3C, the parent company of Baanx and Monovate, and its CEO Garth Howat, seeking to finalize the $175 million acquisition agreed upon in November 2025. The lawsuit, filed in the Delaware Court of Chancery, alleges that Howat and W3C have failed to uphold their obligations under the Stock Purchase Agreement. Upon signing the deal, W3C and Howat received $80 million in loans from Exodus, with $10 million allocated to Howat personally.
However, they have since claimed that these loans do not need to be repaid. The lawsuit accuses Howat and W3C of engaging in a deliberate campaign to evade completing the transaction, including attempting to misappropriate millions of dollars from a subsidiary, falsifying documents, and making unauthorized changes to the company's leadership. Exodus CEO JP Richardson stated, 'We have a binding agreement with W3C and expect it to be fully honored. We are confident in the outcome and anticipate a swift resolution.'