The city of Detroit has filed a wide-reaching lawsuit against crypto-based real estate firm RealToken LLC and several of its affiliates, accusing them of neglecting over 400 residential properties and creating a widespread public nuisance.
According to city officials, the properties—many of which are vacant, blighted, or structurally unsound—pose significant health and safety risks to residents and contribute to urban decay.
The lawsuit alleges that RealToken and its network of shell entities failed to maintain the properties, allowed dangerous conditions to persist, and ignored city orders to bring the homes into compliance.
RealToken Lets Investors Buy Fractional Real Estate Ownership via Blockchain Tokens
RealToken’s business model allows investors to purchase fractional ownership in real estate through blockchain-based tokens.
However, city leaders argue that the firm’s decentralized ownership structure has made it difficult to enforce housing standards and identify responsible parties.
The lawsuit seeks to hold RealToken and its affiliates accountable, push for compliance with property codes, and reclaim control over deteriorating neighborhoods.
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Detroit Alleges RealToken and Founders Neglected Hundreds of Properties in Court Filing
According to the complaint filed in Wayne County Circuit Court, the city of Detroit alleges that RealToken LLC, its co-founders Remy and Jean-Marc Jacobson, and 165 affiliated corporate entities neglected hundreds of residential properties.
City inspectors documented numerous code violations across the portfolio, including severe structural damage, rodent infestations, mold, sewage backups, and illegal utility hookups.
The Buildings, Safety Engineering, and Environmental Department flagged 53 of the properties as posing immediate risks to occupant health and safety.
The lawsuit contends that the defendants failed to take corrective action, contributing to urban blight and endangering local communities across Detroit.
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Detroit Lawsuit Underscores Tensions Between Blockchain Real Estate Models and City Regulations
Detroit’s legal action highlights growing tensions between emerging blockchain-based financial models and traditional municipal regulations.
Officials say this is the largest nuisance abatement case in the city’s history and reflects their commitment to preventing speculative investors—crypto-backed or otherwise—from further harming vulnerable communities.
Additionally, the city of Detroit is seeking a court order requiring RealToken and its co-founders, Remy and Jean-Marc Jacobson, to immediately repair over 400 neglected properties.
The lawsuit demands that rent from tenants be placed into escrow accounts until all health and safety violations are resolved.
Detroit also wants the Jacobson brothers held personally liable, alleging they intentionally withheld funding for critical maintenance by funneling control through former property management firms.
The city argues this neglect not only endangered tenants but also contributed to broader neighborhood decline. Through legal action, Detroit aims to ensure long-term accountability and improved living conditions for affected residents.
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