Section 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 13-2-1.(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: (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.Added by Chapter 365, 2023 General Session ,§ 2, eff. 5/3/2023.