Detroit Sues RealToken Over Neglected Properties, Seeks $500K in Blight Fines

This legal action, described by city officials as the largest nuisance abatement case in Detroit’s history, targets RealToken and 165 affiliated corporate entities for persistent code violations and endangering the health and safety of tenants.

BREAKING: The City of Detroit has filed a landmark lawsuit against Real Token and 165 shell companies for widespread public nuisance violations tied to 400+ blighted properties.

These are homes, not just investments.

— City of Detroit (@CityofDetroit) July 2, 2025

RealToken has faced allegations from city officials regarding neglected properties, which include unsafe conditions such as structural decay, fire hazards, and pest infestations. Its complex ownership structure, which allows global investors to buy fractional ownership in Detroit homes using cryptocurrency, resulting in a web of 165 LLCs, complicates accountability. Residents have reported serious maintenance issues, including leaking roofs and plumbing problems, and many are uncertain about whom to contact for repairs or rent payments.

On these grounds, Detroit is seeking Payment of $500,000 in outstanding blight tickets, Court oversight to ensure all properties meet compliance standards, & Personal liability for the Jacobson brothers regarding tenant conditions.

RealToken claims it has been a victim of unscrupulous property managers and has since taken direct control of property management. The company states that it has begun repairs and is addressing the violations, but notes that the process will take time. RealToken also asserts it has not yet been formally served with the lawsuit and will respond in court.

This case highlights growing concerns about the impact of crypto-based property investment on urban communities. While blockchain technology enables new forms of investment, Detroit officials stress that innovation cannot be used to evade basic responsibilities as landlords. With 60% of Detroiters renting their homes, the city is sending a clear message: property owners must ensure safe, dignified housing, regardless of their business model.

Notably, Dubai is redefining property investment in the Middle East with the launch of Prypco Mint, the region’s first tokenized real estate platform.