Exodus Movement, a publicly traded cryptocurrency company, has filed a lawsuit against W3C, the parent company of Baanx and Monovate, and its CEO Garth Howat, in an effort to complete the $175 million acquisition agreed upon in November last year. The lawsuit, filed in the Delaware Court of Chancery, seeks 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 $10 million allocated to Howat personally, which he claims does not need to be repaid, as stated in the lawsuit.
The lawsuit alleges that Howat and W3C are attempting to evade their commitments to the acquisition, engaging in practices such as falsifying documents and improperly dismissing key personnel. Exodus CEO and Co-founder JP Richardson expressed confidence in the binding agreement and anticipates a swift resolution, stating that they expect the agreement to be fully honored.