Detroit, Michigan – To defend Detroit’s communities in a way that has never been done before, city officials filed a huge lawsuit against Real Token, its owners Remy and Jean-Marc Jacobson, and 165 other businesses that are connected to it. The broad lawsuit says that the defendants let more than 400 homes in the city fall into unsafe disrepair, fueling neighborhood decline and putting residents’ health and safety at risk.
Detroit Corporation Counsel Conrad Mallett described the case as the city’s largest nuisance abatement lawsuit to date.
“This is the largest nuisance abatement case in our history,” said Mallett in a release. “These defendants have profited from our communities while ignoring their most basic legal obligations as landlords and property owners. Our neighborhoods are not investment portfolios — they are homes for Detroit residents.”
The lawsuit says that Real Token, a blockchain-based real estate investment platform, bought hundreds of buildings in Detroit through a complicated network of shell companies. Many of these properties quickly fell apart under their management. The city says that a number code violations were not fixed, putting renters and other communities at risk. These include unsafe living conditions, structural risks, and bug infestations.
Officials say the company’s innovative model — which allows investors around the world to buy fractional shares of properties using cryptocurrency — did not absolve them of responsibility.
“We are sending a message: No matter how innovative your business model may be, you cannot hide behind technology or corporate formalities to evade your responsibilities as a property owner,” said Conrad Mallett.
Council member James Tate echoed those concerns, citing long-standing complaints from residents about issues like lack of heat, standing water, crumbling walls, and illegal utility setups.
“Real Token has shown a blatant disregard for the health and safety of Detroiters. They’ve taken rent from tenants while ignoring dangerous conditions such as no heat, standing water, crumbling structures, and illegal utility setups. They also owe thousands of dollars in unpaid property taxes.” said, Council member James Tate.
The city’s investigation into Real Token and its affiliates began more than five months ago, following mounting community complaints and repeated failed inspections. The Buildings, Safety Engineering, and Environmental Department worked closely with the Law Department to write down a lot of infractions on the premises. Officials say that the defendants’ carelessness has also led to crime, fires, and unpaid property taxes, which makes neighborhoods that are already having trouble with disinvestment much worse.
City leaders said that this lawsuit is a new way to make absentee and careless landlords responsible, no matter how they run their business. Both residents and municipal officials want the case to set a standard for better protections in Detroit’s housing market, especially as new technologies and investment strategies come into play.