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 agreed upon in November 2025. The lawsuit, filed in the Delaware Court of Chancery, seeks to compel Howat to fulfill his obligations as outlined in the 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 declared the loans did not need to be repaid. The lawsuit accuses Howat and W3C of attempting to evade the transaction, alleging a series of improper actions, including the backdating of documents and the dismissal of key personnel.
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.'