78B-3-112. Action for mistaken or fraudulent transaction on a reversible blockchain.
(1) As used in this section: "Blockchain" means a digital ledger of transactions: that is distributed across multiple nodes; that is mathematically verified; and where the validity of transactions is maintained by consensus of nodes. "Blockchain administrator" means a person that is responsible for maintaining and overseeing a blockchain. "Division" means the Division of Consumer Protection created in Section. 13-2-102 "Fraudulent transaction" means a transaction that a person undertakes with the intent to deceive another person, including a transaction that involves: false representation; omissions of material fact; or the use of a false or stolen identity. "Node" means a computer connected to a blockchain. "Proof of identity" means government-issued identification that contains the following information: a person's name; an individual's date of birth; a person's address, which is: for an individual, a residential or business street address; 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 for a person other than an individual, the principal place of business; and an identification number, which is: for a United States person, a taxpayer identification number; or 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. "Reversible blockchain" means a blockchain that: requires the blockchain's users to: provide proof of identity to the blockchain administrator; acknowledge and agree that all transactions occurring on the blockchain are subject to reversal by a sheriff node; and agree to be subject to jurisdiction of a court in Utah; and requires the blockchain administrator to: verify a user's identity by checking the user's proof of identity against government-issued identification databases; and maintain records of a user's proof of identity for a minimum of five years. "Sheriff node" means the same as that term is defined in Section. 67-5-39 "Transaction" means the transfer of digital assets, rights, privileges, or obligations from one person to another that occurs on a blockchain. "User" means a person that interacts with a blockchain. "User" includes a person that is: sending or receiving transactions; accessing data stored on the blockchain; participating in consensus or governance mechanisms; running a node on the blockchain; interacting with smart contracts or decentralized applications; or holding or managing digital assets.
(2) A plaintiff may bring a cause of action against a person to reverse: a fraudulent transaction if: the transaction occurred on a reversible blockchain; the plaintiff entered into the transaction with reasonable reliance on the person's: fraudulent representation; omission of material fact; or use of a false or stolen identity; and the plaintiff was injured as a result of that reasonable reliance; or a mistaken transaction if: the transaction occurs on a reversible blockchain; the transaction resulted in a transfer of assets: to the wrong recipient; or in the wrong amount; and 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