D
etroit has filed a massive lawsuit against Real Token and 165 affiliated companies, alleging they've neglected basic health and safety standards across over 400 properties. The city claims tenants have been left without heat, water, or working showers.

    The suit targets the co-founders of the crypto real estate startup, Remy and Jean-Marc Jacobson, as well as the corporate defendants. Detroit is seeking repairs, rent escrow, and personal liability from the founders.

    According to the complaint, Real Token has profited from its investments while ignoring basic legal obligations as landlords. The platform promises yields of up to 16% to investors, but tenants allegedly bear the cost through substandard living conditions.

    Detroit is asking the court to mandate repairs, establish rent escrow accounts, and hold Remy and Jean-Marc personally liable for refusing to authorize payment for even basic repairs. Many properties lack heat, running water, or secure entryways, with some cases resulting in unsanitary and unsafe living conditions.

    Inspectors identified 53 properties as posing an immediate risk to health and safety due to structural damage, mold, sewage backups, and rodent infestations. One tenant reported living without a working shower for over two years, while another had a collapsed porch blocking access to her home.

    Real Token has been accused of quietly acquiring hundreds of properties in Detroit through fractional ownership, selling shares of these assets through cryptocurrency. The company claims it made history by launching the world's first real estate tokenization platform on Ethereum in 2019.