Cryptocurrency company Exodus Movement (EXOD) has initiated legal proceedings against W3C, the parent entity of crypto payment firms Baanx and Monovate, along with its CEO, Garth Howat. The lawsuit aims to enforce the completion of a previously agreed $175 million acquisition dating back to November last year.
The case is being heard in the Delaware Court of Chancery, where Exodus seeks to compel Garth Howat to adhere to obligations outlined in the Stock Purchase Agreement signed on November 24, 2025. Following the agreement’s signing, Exodus extended loans totaling $80 million to W3C, with $10 million directed personally to Howat. The lawsuit claims that Howat declared these loans need not be repaid.
According to the legal filing, Garth Howat and W3C are allegedly involved in an overt, reckless attempt to avoid fulfilling their commitment to sell W3C to Exodus as per a legally binding agreement. The complaint further alleges that they have misappropriated millions from one of their subsidiaries, backdated official documents submitted to government bodies, and dismissed entire boards and key executives of critical operating units, installing loyalists in their place contrary to the terms of the agreement.
W3C did not provide immediate comments when approached for a statement. Baanx and Monovate, under W3C’s umbrella, were instrumental in launching Crypto Life digital asset cards, collaborating with entities such as Mastercard and MetaMask.
JP Richardson, CEO and Co-founder of Exodus, stated: “We have a binding agreement with W3C and expect it to be honored. We are confident in the path forward and anticipate a swift resolution.”