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 in November of the previous year. The lawsuit, currently underway in the Delaware Court of Chancery, seeks to compel Howat to adhere to the terms outlined in the November 24, 2025 Stock Purchase Agreement. Upon signing 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 alleged in the lawsuit.
The lawsuit accuses Howat and W3C of engaging in a deliberate and improper attempt to evade completing the sale of W3C to Exodus, as promised in the binding agreement. It further alleges that they have attempted to misappropriate millions of dollars from one of their subsidiaries, falsified documents submitted to government authorities, and unjustly dismissed and replaced key personnel in their operating entity.
Howat has yet to respond to a request for comment. Notably, W3C's subsidiaries, Baanx and Monovate, were instrumental in the Crypto Life digital asset cards business, which collaborated with prominent companies such as Mastercard and MetaMask. 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.'