Publicly traded cryptocurrency firm Exodus Movement (EXOD) is suing W3C, the parent company of crypto card and payment specialists Baanx and Monovate, and its CEO, Garth Howat, to complete its $175 million purchase of W3C, which was agreed last November.
A lawsuit in the Delaware Court of Chancery seeks to compel Howat to comply with obligations under the November 24, 2025 stock purchase agreement.
Howat and the W3C accepted $80 million in loans from Exodus upon signing the agreement, with $10 million given to Howat personally, who then stated that they did not have to repay those loans, according to the lawsuit.
“Defendants Garth Howat and W3C engaged in a blatant, reckless and improper campaign to avoid closing a transaction for the sale of W3C to Exodus, which they had promised to complete in a binding agreement,” the lawsuit states.
“They have attempted to steal millions of dollars from one of their own subsidiaries. They have falsely backdated documents filed with government authorities. They have pretended to dismiss entire boards, as well as the CEO and CFO of their main operating unit, and replace them with lackeys of their choosing, despite being barred from doing so by the binding agreement,” it said.
Howat did not immediately respond to a request for comment.
W3C companies Baanx and Monovate were behind the Crypto Life digital asset card business, working with the likes of Mastercard and MetaMask.
JP Richardson, CEO and co-founder of Exodus commented: “We have a binding agreement with the W3C and expect it to be fully respected. We are confident about the way forward and expect a quick resolution.”
