T
he city of Detroit has filed a lawsuit against Real Token, a blockchain-based real estate platform, alleging that the company failed to maintain hundreds of residential properties in the city. The lawsuit claims that co-founders Remy and Jean-Marc Jacobson, along with their 165 affiliated companies, neglected over 400 properties by not meeting basic health and safety requirements, resulting in widespread code violations and blight.

    The city is seeking $500,000 in fines for blight tickets and wants the company to ensure its properties pass compliance inspections. Detroit's Corporation Counsel Conrad Mallet says they are also asking the judge to hold the Jacobson brothers personally liable for the circumstances their tenants face. The city aims to take control of the process to properly attend to vacant properties.

    Real Token claims it hired parties to manage the properties and blames them for the problems. However, the city argues that Real Token used a complex web of shell companies to avoid responsibility. "No matter how innovative your business model may be," Mallet said, "you cannot hide behind technology or corporate formalities to evade your responsibilities as a property owner."