T
he City of Detroit is taking RealT, a cryptocurrency-based real estate company, to court for neglecting hundreds of rental properties across the city. The lawsuit, described as "the largest nuisance abatement lawsuit ever filed by the City of Detroit," accuses RealT of failing to maintain homes and pay its bills.

    RealT operates through a complex web of LLCs, using variations of the name RealToken, to hold individual properties. The company sells fractional ownership of these properties to overseas investors in cryptocurrency, raising nearly $93 million and amassing over 600 properties in Detroit.

    An investigation found that RealT owes the city millions in unpaid taxes and blight tickets, with tenants reporting neglected and unsafe living conditions. More than 100 properties are vacant, and none of the 408 mentioned in the lawsuit have certificates of compliance.

    The complaint highlights 53 properties that pose a significant threat to public health and safety, including those with fire or flood damage, structural issues, or no heat. The city is demanding that RealT correct these code violations within 90 days or allow the city to make repairs at their expense.

    RealT's founders, brothers Remy and Jean-Marc Jacobson, are also being held personally liable for the cost of bringing their properties into compliance. They have blamed a former property manager for the company's problems, but the city rejects this defense.

    "This is not innovation, it's exploitation," said City Councilmember Angela Whitfield Calloway. "Behind the high-tech language lies a deeply familiar problem in this city: neglected properties, unresponsive management, and Detroit families left to live in unsafe conditions."