Exodus Movement is suing W3C and its chief executive, Garth Howat, to force the completion of a $175 million acquisition agreed upon last November. The lawsuit, filed in the Delaware Court of Chancery, alleges that Howat and W3C are intentionally evading their obligations under a binding Stock Purchase Agreement.
According to the legal filing, the defendants are attempting to bypass the terms of the November 24, 2025, agreement. The complaint accuses Howat and W3C of engaging in a "blatant, reckless, and improper campaign" to avoid closing the transaction.
Allegations of financial misconduct
The lawsuit details several specific instances of alleged misconduct during the deal period. Exodus claims that Howat and W3C accepted $80 million in loans from the crypto firm upon signing the deal.
This figure includes $10 million provided to Howat personally. The lawsuit alleges that Howat subsequently declared that these loans did not require repayment.
Exodus further alleges that the defendants attempted to siphon millions of dollars from one of W3C's own subsidiaries. The filing also accuses the pair of backdating government documents and summarily dismissing the boards and executives of key operating entities.
Exodus claims these leadership changes were made to install "lackeys" in violation of the binding agreement. W3C's subsidiaries, Baanx and Monovate, previously operated the Crypto Life digital asset card business, which partnered with Mastercard and MetaMask.
JP Richardson, CEO and Co-founder of Exodus, stated that the company expects the agreement to be fully honored. "We’re confident in the path forward and anticipate a swift resolution," Richardson said.
Howat did not immediately respond to requests for comment regarding the allegations.
