Detroit’s homes have become digital poker chips. The city just launched its largest nuisance abatement lawsuit ever against RealToken, targeting more than 400 residential properties owned by the crypto-based real estate platform. Founders Remy and Jean-Marc Jacobson, along with over 165 affiliated LLCs and shell companies, face serious allegations of neglect and endangerment.
The properties are a mess. Leaking roofs. Collapsing structures. Sewage problems. Standing water. Rodents. Not exactly the glossy brochure material these crypto investors signed up for. RealToken has racked up about $500,000 in code violations while their tenants—often Detroit‘s most vulnerable residents—live in conditions that would make a slum lord blush. Like many blockchain-based platforms, RealToken utilizes smart contracts to manage these property transactions.
Tenants suffer in crypto-fueled squalor while investors collect fractional profits from afar
Here’s the clever bit: RealToken uses blockchain technology to sell fractional shares of these properties to investors worldwide. One house might have 100+ owners, many anonymous and overseas. Try enforcing housing codes against that setup. Not a single property has a certificate of compliance required for rentals in Detroit. Not. One.
City officials aren’t just taking RealToken to court. They’re hitting them where it hurts—the wallet. Corporation Counsel Conrad Mallett emphasized that property owners shouldn’t be able to change LLC names to avoid accountability. Tenants now have legal protection to withhold rent, placing payments in escrow instead of sending money to their crypto-landlords. The court issued a temporary restraining order to prevent any eviction attempts during this process. Can’t fix a roof when the cash flow stops.
The lawsuit exposes a disturbing trend in housing: faceless absentee ownership treating neighborhoods like stock portfolios. When your landlord is literally a computer algorithm dispersed across hundreds of anonymous crypto bros, who exactly do you call when your ceiling caves in?
Detroit’s aggressive stance could set a precedent for how cities handle crypto-landlords nationwide. For long-term community members with deep attachments to their homes, the stakes couldn’t be higher. They’re not just tokens on a blockchain spreadsheet—they’re people. With leaky roofs. And patience that’s running out.
