Exodus Calls Foul: Sues W3C Over $175M Deal That Got Allegedly 'Rug Pulled'

Exodus Movement (EXOD) just dropped the mother of all angry tweets, filing suit against W3C and CEO Garth Howat in Delaware Court of Chancery. Their beef? A $175 million acquisition that apparently ghosted them harder than a DeFi project after the whitepaper drops. The deal, sealed on November 24, 2025 via Stock Purchase Agreement, seems to have developed a severe case of commitment issues.

Now here's where the plot thickens like a poorly coded smart contract: Howat and W3C happily accepted $80 million in loans from Exodus the moment the ink dried, with a cool $10 million flowing directly into Howat's personal wallet. But plot twist—Howat apparently experienced a sudden case of selective amnesia, deciding those loans were more theoretical than practical and absolutely not something one repays. Bold move for someone who presumably still remembers how to check their bank balance.

The lawsuit reads like a heist movie script, with Exodus accusing W3C of attempting to "pilfer millions" from its own subsidiary, filing government documents with dates that would make a time traveler dizzy, and trying to fire entire boards of directors and key executives like they're on a management speedrun—all while supposedly bound by the same agreement they signed.