Detroit Sues Crypto Real Estate Platform Over Safety, Health Violations
Detroit has filed a lawsuit against RealToken LLC and 165 affiliated corporate defendants, marking the largest nuisance abatement lawsuit in the city's history. The lawsuit alleges that RealToken, a blockchain-based real estate investment platform, failed to meet health and safety standards for 400 properties, resulting in hazardous living conditions for tenants. The city claims that the defendants profited while neglecting their legal obligations as landlords. Detroit seeks court orders for property repairs, rent escrow accounts, and personal liability for co-founders Remy and Jean-Marc Jacobson. The complaint highlights issues such as lack of heat, running water, and secure entryways in many properties, with inspectors identifying 53 properties posing immediate health risks. RealToken has been acquiring properties in Detroit and offering fractional ownership through cryptocurrency.
