Detroit sues blockchain firm over 400 damaged homes

Detroit is facing a growing housing crisis, but a recent lawsuit has brought attention to a new player in the city’s property woes: a blockchain real estate company based in Florida. The city filed a landmark public nuisance lawsuit on July 2 against Real Token and its founders, brothers Remy Jacobson and Jean-Marc Jacobson, as well as 165 affiliated entities. This case involves more than 400 residential properties across Detroit, many of which are in severe disrepair and pose serious risks to the people living in them.

The lawsuit reveals a disturbing reality for some Detroit residents. One tenant, living in an apartment on the city’s east side, has been forced to live without running water for two months, relying solely on bottled water to get by. Just upstairs, another tenant faces a different set of challenges: no hot water in her kitchen, electrical outlets that don’t work, and large gaps around the windows that let in the cold. Outside their homes, a backyard door has been boarded up, further highlighting the neglect.

These conditions are not isolated. The city has documented properties with fire damage, broken windows, no smoke detectors, and apartments without heat. Such neglect creates unsafe living environments and contributes to the decline of neighborhoods that are already struggling.

Conrad Mallett, Detroit’s corporation counsel, called this lawsuit the largest nuisance abatement case the city has ever filed. A nuisance abatement lawsuit targets property owners who fail to maintain safe and habitable conditions, threatening public health and safety. In this case, the defendants, Real Token and its affiliates, are accused of ignoring these responsibilities for hundreds of homes, worsening the housing challenges in Detroit.

The involvement of a blockchain real estate company in this case highlights the complexities of modern property ownership and management. Real Token, which uses blockchain technology to manage and trade real estate assets, is relatively new to the property market. However, with ownership comes accountability, and Detroit officials are making it clear that technology cannot be an excuse for neglecting residents’ basic needs.

For the affected tenants, the impact is deeply personal. Living without running water or heat, dealing with broken infrastructure, and facing the threat of fire hazards are daily struggles. These issues don’t just affect individual families; they affect entire communities and the overall quality of life in the city.

Detroit’s lawsuit aims to hold Real Token accountable and force improvements to these properties. It also serves as a reminder to all property owners that safe, livable housing is a legal and moral obligation, regardless of the ownership structure or technological platform involved.

As Detroit continues to rebuild and revitalize its neighborhoods, addressing housing safety and maintenance remains a critical priority. This lawsuit marks an important step toward protecting residents and ensuring that all homes provide a safe place to live.