Exodus Movement Sues W3C Over Stalled $175 Million Crypto Acquisition

Listed cryptocurrency firm Exodus Movement (EXOD) has filed a lawsuit against W3C — the parent company of crypto payments specialists Baanx and Monovate — and its chief executive Garth Howat, seeking to force completion of a $175 million acquisition deal agreed in November 2024.

The legal action, filed in the Delaware Court of Chancery, aims to compel Howat to fulfill obligations outlined in a Stock Purchase Agreement signed on November 24, 2025. At the time of signing, Exodus extended $80 million in loans to W3C and its CEO, including $10 million paid directly to Howat. According to the lawsuit, Howat subsequently claimed these loans did not need to be repaid.

Exodus has accused Howat and W3C of deliberately attempting to back out of the binding deal through a series of alleged misconduct. The complaint alleges that the defendants tried to siphon funds from one of their own subsidiaries, falsely backdated documents submitted to government authorities, and unlawfully removed board members along with the CEO and CFO of a key operating entity — replacing them with individuals of their own choosing, in direct violation of the agreement.

"Defendants Garth Howat and W3C are engaged in a blatant, reckless, and improper campaign to escape closing a transaction," the lawsuit states, describing the behavior as a calculated effort to avoid legally binding commitments.

W3C's subsidiaries, Baanx and Monovate, were central to its Crypto Life digital asset card platform, which had established partnerships with major financial players including Mastercard and MetaMask.

Howat has not responded to requests for comment.

Exodus CEO and Co-founder JP Richardson expressed confidence in the company's legal position, stating the firm has a binding agreement with W3C and expects it to be fully honored, anticipating a swift resolution.