78B-3-112. Action for mistaken or fraudulent transaction on a reversible blockchain.
628 words·~3 min read·
/ut/title-78b/chapter-3/78b-3-112·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Effective 5/6/2026
78B-3-112. Action for mistaken or fraudulent transaction on a reversible blockchain.
(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.
(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 .
Amended by Chapter 95 , 2026 General Session