Exodus Movement, which provides cryptocurrency wallet and payment solutions, filed a lawsuit in Delaware against W3C and its CEO Garth Howat. The lawsuit aims to remind W3C of its obligations to complete the $175 million purchase agreement signed last November.
Tension in the Purchasing Process
With the agreement made in late 2023, it was decided to transfer W3C shares to Exodus. Following the agreement, Exodus loaned W3C and Howat a total of $80 million; $10 million of this amount was transferred directly to Garth Howat’s account. Howat claimed those payments would not be refunded, according to documents Exodus filed with the court.
The lawsuit alleged that Howat and W3C avoided implementing the agreement and took various steps that disrupted the process. Despite the binding agreement, the parties attempted to divest W3C’s assets and make changes to its board of directors, court filings said.
Controversial Management Changes
According to the allegations made by Exodus, millions of dollars were attempted to be withdrawn from the coffers of Howat and a subsidiary of W3C, one of its affiliated companies. It was stated that the dates of some documents given to state institutions were changed retroactively during this process.
It was also alleged that W3C management tried to dismiss the entire board of directors, including the CEO and CFO, of its main operating subsidiary, and replace them with people close to them. It was alleged that these appointments were contrary to the binding terms of the said sales agreement.
Garth Howat left questions on the subject unanswered. It is not yet clear whether W3C will make a statement.
W3C operates companies Baanx and Monovate, which specialize in crypto payment cards and digital asset management. These companies took part in the card program called Crypto Life, which is run by big names such as Mastercard and MetaMask.
Exodus, co-founded and CEO of JP Richardson, is known for its platforms that facilitate the storage and transfer of various digital assets. In his statement regarding the case, Richardson stated that the current agreement is binding and that all conditions of this agreement must be fulfilled.
“We have a binding agreement with the W3C and we expect it to be fully implemented. We are confident in our roadmap and confident that the issue will be resolved in a short time,” said JP Richardson.
