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The City of Detroit has filed a nuisance-abatement lawsuit against Real Token and 165 shell companies
Officials have alleged that more than 400 rental homes have repeatedly violated health and safety codes
City leaders have branded the legal action the largest nuisance case in Detroit’s history

Detroit has sued blockchain-based real-estate investment platform Real Token, along with its founders Remy and Jean-Marc Jacobson and 165 affiliated limited-liability companies, accusing them of letting more than 400 houses slide into dangerous disrepair. The city contends the defendants used a tangle of LLCs to evade responsibility for basic maintenance, leaving tenants exposed to crime, fire hazards and collapsing structures. Officials say the case is meant to prove that new technology will not shield negligent landlords in a first-of-its-kind lawsuit.

Largest Nuisance Case on Record

Filed Tuesday in Wayne County, Corporation Counsel Conrad Mallet called Detroit’s complaint “the largest nuisance abatement case in our history,” adding, “These defendants have profited from our communities while ignoring their most basic legal obligations.” Mallet stressed that neighborhoods are “homes for Detroit residents” rather than investment portfolios, in reference to Real Token’s means of operation.

Inspectors charge that the properties have racked up persistent code violations, from rodent infestations and illegal utility hookups to crumbling walls and a lack of heat. Council Member James Tate accused Real Token of showing “a blatant disregard for the health and safety of Detroiters,” noting that the companies collected rent while ignoring “dangerous conditions such as no heat, standing water, [and] crumbling structures.”

Blockchain Model Under Scrutiny

Real Token markets fractional shares of rental houses as digital tokens, attracting investors worldwide due to the ability to own small amounts of real estate. However, Detroit argues that this innovation has been paired with a “complex web of LLCs and shell companies,” making it harder to find a responsible party when things go wrong. “No matter how innovative your business model may be, you cannot hide behind technology,” Mallett warned.

The filing caps a five-month probe spurred by resident complaints and coordinated by the Law Department and the Buildings, Safety Engineering and Environmental Department. Detroit is asking the court to compel the owners to fix the homes, pay fines and reimburse unpaid property taxes. Tate said the suit should “send a clear message” that City Hall will not tolerate absentee ownership that undermines neighborhood safety.

Real Token has yet to comment on the allegations made in the lawsuit.

The post Detroit Sues Real Token Over 400 Blighted Homes appeared first on FullyCrypto.

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Filed under: Bitcoin - @ July 4, 2025 8:26 am