{"data":{"id":"us-ut/utah-code-78b-3-112","jurisdiction":"us-ut","citation":"Utah Code § 78B-3-112","heading":"Action for mistaken or fraudulent transaction on a reversible blockchain.","body":"(1) As used in this section:\n(a) \"Blockchain\" means a digital ledger of transactions:\n(i) that is distributed across multiple nodes;\n(ii) that is mathematically verified; and\n(iii) where the validity of transactions is maintained by consensus of nodes.\n(b) \"Blockchain administrator\" means a person that is responsible for maintaining and overseeing a blockchain.\n(c) \"Division\" means the Division of Consumer Protection created in Section 13-2-102.\n(d) \"Fraudulent transaction\" means a transaction that a person undertakes with the intent to deceive another person, including a transaction that involves:\n(i) false representation;\n(ii) omissions of material fact; or\n(iii) the use of a false or stolen identity.\n(e) \"Node\" means a computer connected to a blockchain.\n(f) \"Proof of identity\" means government-issued identification that contains the following information:\n(i) a person's name;\n(ii) an individual's date of birth;\n(iii) a person's address, which is:\n(A) for an individual, a residential or business street address;\n(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\n(C) for a person other than an individual, the principal place of business; and\n(iv) an identification number, which is:\n(A) for a United States person, a taxpayer identification number; or\n(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.\n(g) \"Reversible blockchain\" means a blockchain that:\n(i) requires the blockchain's users to:\n(A) provide proof of identity to the blockchain administrator;\n(B) acknowledge and agree that all transactions occurring on the blockchain are subject to reversal by a sheriff node; and\n(C) agree to be subject to jurisdiction of a court in Utah; and\n(ii) requires the blockchain administrator to:\n(A) verify a user's identity by checking the user's proof of identity against government-issued identification databases; and\n(B) maintain records of a user's proof of identity for a minimum of five years.\n(h) \"Sheriff node\" means the same as that term is defined in Section 67-5-39.\n(i) \"Transaction\" means the transfer of digital assets, rights, privileges, or obligations from one person to another that occurs on a blockchain.\n(j)\n(i) \"User\" means a person that interacts with a blockchain.\n(ii) \"User\" includes a person that is:\n(A) sending or receiving transactions;\n(B) accessing data stored on the blockchain;\n(C) participating in consensus or governance mechanisms;\n(D) running a node on the blockchain;\n(E) interacting with smart contracts or decentralized applications; or\n(F) holding or managing digital assets.\n(2) A plaintiff may bring a cause of action against a person to reverse:\n(a) a fraudulent transaction if:\n(i) the transaction occurred on a reversible blockchain;\n(ii) the plaintiff entered into the transaction with reasonable reliance on the person's:\n(A) fraudulent representation;\n(B) omission of material fact; or\n(C) use of a false or stolen identity; and\n(iii) the plaintiff was injured as a result of that reasonable reliance; or\n(b) a mistaken transaction if:\n(i) the transaction occurs on a reversible blockchain;\n(ii) the transaction resulted in a transfer of assets:\n(A) to the wrong recipient; or\n(B) in the wrong amount; and\n(iii) the recipient's refusal to return the assets resulted in the unjust enrichment of the recipient.\n(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.","path":["Title 78B Judicial Code","Chapter 78B-3 Civil Actions","Part 78B-3-1 Right to Sue and Be Sued"],"source_url":"https://le.utah.gov/xcode/Title78B/Chapter3/78B-3-S112.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:34Z","sha256":"7b002aa2b8222638573484db34575b9d85d03359ba5addc146a8264e18b4b7db","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-78b-3-111","next":"us-ut/utah-code-78b-3-113"},"notice":"GroundRules: Original legal text. Not legal advice."}