Detroit Sues Crypto Real Estate Platform Over Safety, Health Violations

Detroit has launched its largest nuisance abatement lawsuit to date, targeting Real Token and 165 affiliated LLCs. The city alleges that tenants across more than 400 properties endured hazardous living conditions—lacking heat, water, and functional showers.

The lawsuit names RealToken's Florida-based co-founders, Remy and Jean-Marc Jacobson, seeking repairs, rent escrow, and personal liability. "Our neighborhoods are not investment portfolios," said Conrad Mallett, Detroit's corporation counsel, condemning the platform's alleged neglect while promising investors 16% yields.

Real Token's blockchain-based real estate model faces scrutiny as Detroit prioritizes resident welfare over speculative gains. The case underscores growing regulatory friction between municipal governance and crypto-driven asset management.