Utah Code § 78B-3-112 — Utah Code / Title 78B / Chapter 78B-3 / § 78B-3-112
§ 78B-3-112. Action for mistaken or fraudulent transaction on a reversible blockchain.
Status: in_force

(1) As used in this section: (a) "Blockchain" means a digital ledger of transactions: (i) that is distributed across multiple nodes; (ii) that is mathematically verified; and (iii) where the validity of transactions is maintained by consensus of nodes. (b) "Blockchain administrator" means a person that is responsible for maintaining and overseeing a blockchain. (c) "Division" means the Division of Consumer Protection created in Section 13-2-102. (d) "Fraudulent transaction" means a transaction that a person undertakes with the intent to deceive another person, including a transaction that involves: (i) false representation; (ii) omissions of material fact; or (iii) the use of a false or stolen identity. (e) "Node" means a computer connected to a blockchain. (f) "Proof of identity" means government-issued identification that contains the following information: (i) a person's name; (ii) an individual's date of birth; (iii) a person's address, which is: (A) for an individual, a residential or business street address; (B) for an individual who does not have a residential or business street address, a Post Office box number or the residential or business street address of next of kin or of another contact individual; or (C) for a person other than an individual, the principal place of business; and (iv) an identification number, which is: (A) for a United States person, a taxpayer identification number; or (B) for a non-United States person, a taxpayer identification number, passport number and country of issuance, alien identification card number, or the number and country of issuance of any other government-issued document evidencing nationality or residence and bearing a photograph or similar safeguard. (g) "Reversible blockchain" means a blockchain that: (i) requires the blockchain's users to: (A) provide proof of identity to the blockchain administrator; (B) acknowledge and agree that all transactions occurring on the blockchain are subject to reversal by a sheriff node; and (C) agree to be subject to jurisdiction of a court in Utah; and (ii) requires the blockchain administrator to: (A) verify a user's identity by checking the user's proof of identity against government-issued identification databases; and (B) maintain records of a user's proof of identity for a minimum of five years. (h) "Sheriff node" means the same as that term is defined in Section 67-5-39. (i) "Transaction" means the transfer of digital assets, rights, privileges, or obligations from one person to another that occurs on a blockchain. (j) (i) "User" means a person that interacts with a blockchain. (ii) "User" includes a person that is: (A) sending or receiving transactions; (B) accessing data stored on the blockchain; (C) participating in consensus or governance mechanisms; (D) running a node on the blockchain; (E) interacting with smart contracts or decentralized applications; or (F) holding or managing digital assets. (2) A plaintiff may bring a cause of action against a person to reverse: (a) a fraudulent transaction if: (i) the transaction occurred on a reversible blockchain; (ii) the plaintiff entered into the transaction with reasonable reliance on the person's: (A) fraudulent representation; (B) omission of material fact; or (C) use of a false or stolen identity; and (iii) the plaintiff was injured as a result of that reasonable reliance; or (b) a mistaken transaction if: (i) the transaction occurs on a reversible blockchain; (ii) the transaction resulted in a transfer of assets: (A) to the wrong recipient; or (B) in the wrong amount; and (iii) the recipient's refusal to return the assets resulted in the unjust enrichment of the recipient. (3) Upon a finding of a mistaken or fraudulent transaction, the court shall issue an order to the Office of the Attorney General to reverse the transaction in accordance with Section 67-5-39.