Utherverse attorney Gary Shuster has sued Joshua Denne, Blockchain Funding, Blockchain Alliance, Masternode Partners and Nima Momayez for malicious prosecution.
Shuster’s lawsuit, filed on December 8th, 2025, follows a
dismissed lawsuit filed against him
in November 2024.
In the lawsuit, Blockchain Alliance defendants accused Shuster of
engag[ing] in a systematic and intentional pattern of fraudulent conduct, misappropriating investor funds, concealing material facts, and making multiple false statements about the nature and profitability of their investments.
Blockchain Alliance
was a collapsed MLM crypto scheme set up by Joshua Denne (right) in 2023.
In the dismissed lawsuit, Denne blamed Shuster and other Utherverse defendants for Blockchain Alliance’s collapse.
In his malicious prosecution lawsuit, Gary Shuster asserts;
Defendants accused Gary Shuster of knowingly aiding in fraud and theft of investor funds, despite having no factual evidence of any wrongdoing by him.
Indeed, the complaint admitted that many specifics of the alleged conspiracy were “unknown to Plaintiffs at
this time”, underscoring that the accusations against Gary Shuster were speculative and not grounded in verified fact.
Indeed, the Malicious Suit failed to plead with particularity even a single specific example of a fraudulent act – a California mandatory pleading requirement for alleging fraud, analogous to Federal Rule of Civil Procedure 9(b).
Instead, the complaint relied on speculation and inuendo that, largely in his role as an attorney, Gary Shuster wrongfully conspired with his clients as part of providing them with legal advice.
Shuster (right) cites the only allegation made him that wasn’t “made on information and belief alone”, that he was a resident of California, was false.
Shuster claims he has been based out of British Columbia, Canada since 2017.
By falsely asserting a California residence for Shuster, Defendants attempted to create a false basis for general jurisdiction over him in California and to mislead the court into believing Shuster had a domestic connection to the forum.
The jurisdictional issue created posed further immediate hurdles for Shuster with respect to his legal work. Shuster claims he needs to maintain his California bar license to continue taking on clients in British Columbia.
The Blockchain Alliance lawsuit put that license (PFL) in jeopardy.
Because of the ethical lapse that would be involved in intentionally taking on any new British Columbia clients while knowing that there is a risk of loss of PFL licensure, Plaintiff has been severely impaired in obtaining additional legal work.
Even should the PFL issue, Plaintiff has suffered financial harm from the combination of knowledge that the Malicious Case
may preclude renewal of the PFL and the ethical bar to taking on clients with actual knowledge that the PFL may not be renewed, leaving new clients “in the lurch”.
Plaintiff’s law practice was and is essentially
🤖 Quick Answer
What is the malicious prosecution lawsuit filed by Utherverse attorney Gary Shuster?Gary Shuster, an attorney associated with Utherverse, filed a malicious prosecution lawsuit on December 8, 2025, against Joshua Denne, Blockchain Funding, Blockchain Alliance, Masternode Partners, and Nima Momayez. The suit follows a previously dismissed 2024 lawsuit in which those defendants had accused Shuster of fraudulent conduct and misappropriation of investor funds.
Who is Joshua Denne and what is his connection to Blockchain Alliance?
Joshua Denne established Blockchain Alliance in 2023 as a cryptocurrency venture that subsequently collapsed. The entity has been characterized as a collapsed MLM crypto scheme. Denne previously filed a lawsuit blaming Shuster and other Utherverse-affiliated defendants for Blockchain Alliance's failure, which was later dismissed by the court.
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