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 agreed upon last November. The lawsuit, submitted to the Delaware Court of Chancery, seeks to compel Howat to fulfill his obligations as outlined in 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 directly to Howat, who allegedly claimed the loans did not require repayment. The lawsuit accuses Howat and W3C of engaging in a deliberate campaign to evade completing the transaction, having attempted to misappropriate millions of dollars from a subsidiary, falsified documents submitted to government authorities, and improperly dismissed and replaced key personnel. In response to the allegations, 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.'