Utherverse Attorney Takes Legal Action Against Joshua Denne
Gary Shuster, an attorney representing Utherverse, has initiated a lawsuit against Joshua Denne, Blockchain Funding, Blockchain Alliance, Masternode Partners, and Nima Momayez for malicious prosecution. This legal move, filed on December 8, 2025, follows a previous lawsuit against Shuster that was dismissed in November 2024.
Background of the Case
In the earlier lawsuit, the defendants from Blockchain Alliance accused Shuster of participating in fraudulent activities, including misappropriating investor funds and making misleading statements about the profitability of their investments. This organization was linked to a failed MLM crypto venture initiated by Denne in 2023.
During the dismissed proceedings, Denne placed the blame for Blockchain Alliance's downfall squarely on Shuster and other parties associated with Utherverse.
Shuster's Counterclaims
In his new lawsuit, Shuster contends that the accusations against him were baseless and lacked factual evidence. He points out that the complaint admitted the specifics of the alleged conspiracy were “unknown to Plaintiffs at this time,” highlighting the speculative nature of the claims.
“The complaint failed to provide even a single specific example of a fraudulent act, violating the necessary California pleading requirements,” Shuster asserted.
Shuster argues that the allegations were merely insinuations that he colluded with his clients, failing to meet the legal standards required to substantiate claims of fraud.
Jurisdictional Challenge
One key aspect of the lawsuit is the claim that Shuster resides in California, an assertion he denies. Shuster states he has been based in British Columbia, Canada, since 2017. The defendants’ misrepresentation of his residency, according to Shuster, was an attempt to establish jurisdiction over him in California, which could mislead the court regarding his local connections.
This jurisdictional issue poses significant challenges for Shuster’s legal practice. He maintains that preserving his California bar license is crucial for his work in British Columbia.
Impact on Shuster’s Practice
Shuster claims the ongoing legal battle has put his professional license at risk, severely limiting his ability to take on new clients. He indicates that the uncertainty surrounding his license renewal due to the malicious prosecution case has caused substantial financial harm, impacting his income and leading to lost opportunities.
“My law practice is effectively on hold,” Shuster stated, adding that he has had to turn down potential engagements and referrals.
This situation not only threatens Shuster's financial stability but also raises ethical concerns regarding his professional responsibilities. He emphasized that knowingly taking on new clients while being aware of potential licensing issues would constitute a significant ethical violation.
What This Means for the MLM Community
The implications of this lawsuit extend beyond Shuster and the accused parties. For the MLM community, particularly those engaged in cryptocurrency investments, this case underscores the risks involved in legal disputes and the potential for reputational damage. The accusations and subsequent legal actions highlight the need for transparency and accountability in MLM operations.
For distributors, this situation illustrates the precarious nature of their affiliations and the importance of vetting the companies they represent. With the rise of cryptocurrency-related MLMs, understanding the legal landscapes and potential pitfalls becomes essential.
Looking Ahead
As this case unfolds, industry observers should keep an eye on how the courts address the allegations of malicious prosecution and the broader implications for legal standards in MLM operations. Furthermore, the outcomes may influence how MLM companies structure their operations and manage legal risks in the future.
