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What Is the Legal Principle of ‘Unjust Enrichment’ in a Crypto Context?

Unjust enrichment is a legal principle where one party benefits unfairly at the expense of another. In a crypto context, this applies when funds are sent to a smart contract or wallet in error, or due to a contract bug.

A court may order the recipient to return the funds to prevent them from being unjustly enriched, even if no formal contract was breached.

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