Detroit Sues Real Estate Tokenization Firm RealToken Over 400 Blighted Properties

Detroit has launched a legal offensive against RealToken LLC, a blockchain-based real estate firm, alleging systemic neglect across more than 400 residential properties. The lawsuit, filed in Wayne County Circuit Court, targets co-founders Remy and Jean-Marc Jacobson alongside 165 corporate entities tied to the project.

City inspectors documented egregious violations—structural decay, rodent infestations, and hazardous mold—with 53 properties flagged as immediate health threats. RealToken's business model, which fractionalizes property ownership via tokenization, allegedly masked accountability through a web of shell companies.

The city demands court-ordered repairs, rent escrow accounts, and personal liability for the Jacobsons. This case tests the legal framework for blockchain-powered real estate ventures, spotlighting the tension between innovation and tenant protections.