Exodus Movement, a publicly traded cryptocurrency company, has filed a lawsuit against W3C 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 comply with the terms of 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 their obligations, including attempting to misappropriate funds from a subsidiary, falsifying documents, and making unauthorized changes to the company's leadership.
Exodus CEO JP Richardson stated that the company expects the agreement to be honored and is confident in a swift resolution. Howat has not responded to requests for comment. W3C's subsidiaries, Baanx and Monovate, were involved in the Crypto Life digital asset cards business, which collaborated with major players like Mastercard and MetaMask.