• Wayne County Circuit Court Judge issues Temporary Restraining Order, barring Real Token and its affiliated companies from collecting rent from tenants until the property they live in is improved and issued a Certificate of Compliance
• City will assist tenants in setting up escrow accounts for rent deposits that will be accessible to the landlord ONLY to pay for repairs to bring the property into compliance
• Real Token also prohibited from pursuing eviction for any tenants living in properties that do not have a C of C 

The City of Detroit has won a landmark protection on behalf of tenants living in hundreds of distressed properties in the city owned by Real Token.  Earlier this month, the City announced a sweeping legal action against Real Token, Remy and Jean-Marc Jacobson, and their 165 affiliated corporate defendants, for public nuisance violations involving over four hundred residential properties across Detroit.

On Tuesday, Wayne County Circuit Court Judge Annette Berry issued a temporary restraining order that included the following protections for residents living in any Real Token-affiliated property:

• Prohibits the landlord from collecting any rent from tenants in any of their properties until such time they have made necessary improvements to the property AND received a certificate of compliance from the City. The landlord can access rent paid by tenants into an escrow account ONLY to make repairs that bring the property into compliance. Real Token must notify and advise residents within 14 days to pay their rent into an escrow account. The City of Detroit will help guide tenants through the process of establishing an escrow account.
• Prohibits Real Token and any of its affiliated companies from pursuing evictions from any of its properties that do not have a C of C, as long as tenants are depositing rent into their escrow account.  
• Requires the defendants to begin pursuing a C of C for all properties and to grant full access to city officials for the purposes of inspections.
• Requires Real Token to secure all 58 of the identified vacant Priority One properties within 30 days and to have any code violations corrected within 90 days. 

“This is a major win that should start to bring swift relief to residents living in some pretty terrible conditions,” said Corporation Counsel Conrad Mallett. “This also should send a very clear message to other large-scale owners of blighted rental properties in Detroit because we are not stopping with Real Token.”  

The lawsuit alleges that Real Token — a blockchain-based real estate investment platform — and its network of shell corporations and affiliates neglected its responsibility to ensure that hundreds of properties in Detroit complied with basic health and safety requirements. That failure leading to widespread code violations and blighted properties, including criminal activity and endangerment of the health and safety of Real Token tenants.

“This is the largest nuisance abatement case in our history,” said Conrad Mallett, Corporation Counsel for the City of Detroit at the time of the filing. “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.” 

Key Allegations:

• Persistent Code Violations: The properties cited in the lawsuit were repeatedly found to be in violation of local building, health, and safety codes.
• Negligent Ownership Structure: Real Token allegedly used a complex web of LLCs and shell companies to evade responsibility for property upkeep.
• Endangerment to Public Health & Safety: The neglect has led to increased criminal activity, rodent infestations, fire hazards, and structural decay.
• Blockchain and Accountability: This is believed to be the first lawsuit of its kind targeting a blockchain-based property investment platform for nuisance-related violations at scale. 

“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.

"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. "They haven’t followed the rules and haven’t shown up when residents needed help. That’s not just wrong... it’s dangerous. I applaud the Law Department for standing up for Detroiters and sending a clear message that we will not allow anyone to treat our people and neighborhoods with this kind of disrespect."

Background:

Real Token markets itself as a decentralized real estate investment platform, allowing international investors to buy fractional ownership in rental properties via tokenized blockchain assets. Critics argue this model has enabled disinvestment in communities and obstructed traditional enforcement mechanisms.

Residents have long complained about the condition of these properties. According to officials, today’s lawsuit is the result of over five months of investigation, community complaints, and interagency coordination between the Law Department and the Buildings, Safety Engineering, and Environmental Department of the City of Detroit.