Detroit Sues Cryptocurrency-Based Real Estate Firm Over Hundreds of Blighted Properties
By Louis Aguilar, The Detroit News
Detroit, MI – In the largest nuisance abatement lawsuit in Detroit’s history, city officials have filed suit against a Florida-based cryptocurrency real estate company and its co-founders for alleged neglect and widespread blight across more than 400 residential properties in Detroit. The lawsuit, filed Wednesday in Wayne County Circuit Court, targets Real Token (also known as RealT), its co-founders Remy and Jean-Marc Jacobson, and 165 associated corporate entities.
The properties in question are largely rental units located in low-income neighborhoods, alongside vacant and severely dilapidated homes that city officials describe as public health threats. Many of these properties are owned by investors—often from outside the United States—who buy fractional ownership through cryptocurrency transactions.
Allegations of Neglect and Public Harm
The lawsuit lists 53 properties as "priority one," meaning they pose an unquestionable danger to public health, safety, or welfare. City officials allege that Real Token and its network failed to ensure these properties complied with basic health and safety codes despite repeated warnings and correction orders. Efforts to address the issues through meetings and communications have reportedly yielded minimal improvements.
Detroit City Councilman James Tate expressed strong frustration at the conditions encountered in these properties. “By the time I got inside some of these homes, I was furious. We’re talking about roofs leaking, sewage leaking into basements, and standing water in many locations,” Tate said during a press conference held in the Brightmoor neighborhood. He underscored the vulnerable situation of tenants living in these unsafe conditions, and noted that 408 properties currently lack a complete certification of compliance.
Cryptocurrency Real Estate Ventures Under Scrutiny
Real Token operates as a blockchain-based real estate platform promising investors rental income returns between 6% and 16% annually. According to the company’s website, it has attracted over 65,000 investors worldwide. The platform currently advertises opportunities for foreign investors to purchase fractional shares of Michigan properties, with investment stakes around $50, though these offerings are not available to U.S. residents.
Remy and Jean-Marc Jacobson are identified as co-founders and co-CEOs of RealT. The city’s lawsuit accuses them and their affiliated companies of public nuisance violations related to neglect, claiming their corporate network served as a shell structure that evaded responsibility for property management and upkeep.
Company Response and Management Challenges
In an email response, Real Token acknowledged problems and placed primary blame on several third-party property management companies hired to maintain the properties and handle tenant issues. According to the company, these management firms were paid significant sums but misappropriated funds, hurting both tenants and Real Token.
“We have taken full responsibility for our mistakes,” the company’s statement read. Since December 1, 2024, Real Token claims to have invested in a dedicated property management company to directly oversee property maintenance and enforce compliance with Detroit’s municipal codes.
The company added that it has made repairs to dozens of properties, addressed hundreds of blight citations, and deployed contractor teams to resolve outstanding issues. It emphasized the complexity and time required to rehabilitate a large portfolio but affirmed commitment to its mission and ongoing improvements.
Legal Remedies and Next Steps
Detroit Corporation Counsel Conrad Mallett outlined the city’s demands, including recovery of approximately $500,000 in fines for violations, and ensuring all affected properties pass compliance inspections to obtain required certificates of compliance. The city is also seeking to hold the Jacobson brothers personally liable for tenant conditions and asks the court to take oversight of the repair and registration process for all properties, including vacant ones.
“For tenants living in these homes, while repairs are underway, we want them to have the ability to place rent payments in escrow to protect their interests,” Mallett said.
Broader Implications
The lawsuit shines a spotlight on emerging challenges at the intersection of blockchain technology, fractional real estate investment, and urban housing management. As cryptocurrency-based platforms enable broader participation in real estate markets, questions arise about accountability and regulatory compliance, especially in communities with vulnerable populations.
City officials vow to continue aggressively pursuing corrective action to restore safe and habitable conditions in Detroit neighborhoods affected by neglect.
For further information, contact Louis Aguilar at [email protected].
© 2025 The Detroit News. All rights reserved.