Detroit Drops the Hammer on Crypto Real Estate Giant RealToken

City Sues Over 400 Deteriorating Properties

Hold onto your hats, folks! Detroit just went full-blown legal on RealToken LLC, a blockchain real estate outfit, for turning over 400 homes into a public nightmare. We're talking a sweeping lawsuit that's shaking the crypto world!

RealToken thought it could play the blockchain game, tokenizing properties and selling slices of them to investors worldwide. But the city's had enough of their so-called "neglect." Detroit's shouting from the rooftops that these guys have been dropping the ball on basic health and safety, leaving tenants in a mess.

The city's not messing around, filing the suit in Wayne County Circuit Court and dragging RealToken, its founders Remy and Jean-Marc Jacobson, and 165 shady corporate buddies into the spotlight. They're saying these properties are falling apart on their watch!

City inspectors are on the warpath, documenting a horror show of violations: crumbling structures, rats running wild, mold creeping in, sewage backups, and some sketchy utility connections. Out of the 400 properties, 53 are straight-up danger zones for tenants!

But here's the kicker: Detroit says RealToken's been playing shell games with limited liability companies, hiding who's really in charge and dodging responsibility while tenants are stuck in unsafe homes.

The city's demanding the court force RealToken to fix up these places ASAP, set up rent escrow accounts, and hold the Jacobson brothers' feet to the fire for allegedly stiffing property managers on maintenance cash.

RealToken hit the scene in 2019, all about tokenizing real estate on Ethereum before hopping over to Gnosis Chain. They claimed it was all about breaking down investment barriers and bringing transparency to a market that's usually as liquid as a desert. But critics are calling BS, saying their fractional ownership model's leaving properties empty and crumbling because they're just investment toys, not homes.

With investors scattered all over the globe and no one stepping up to keep these places livable, it's no wonder neighborhoods are taking a hit from all the vacant, decaying houses.

Corporation Counsel Conrad Mallett's not pulling any punches, calling this "the largest nuisance abatement case in our history" and making it clear that being innovative doesn't mean you get a free pass on your legal duties.

Meanwhile, the buzz around tokenized real estate is growing louder, with Deloitte predicting a $4 trillion market by 2035. Blockchain's making waves, turning real estate into a game of fractional ownership that's easier on the wallet and greasing the wheels of market liquidity. But if Detroit's lawsuit is any sign, this crypto real estate party might be getting a serious reality check!