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. A lawsuit has been filed in the Delaware Court of Chancery to compel Howat to fulfill his obligations under 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 avoid completing the transaction, citing actions such as the misappropriation of millions of dollars from a subsidiary, falsification of documents, and unauthorized replacement of key personnel. Howat has yet to respond to requests for comment. W3C's subsidiaries, Baanx and Monovate, were instrumental in the development of the Crypto Life digital asset cards business, which collaborated with prominent companies like 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 our position and anticipate a swift resolution.'