The City of Detroit has initiated legal action against RealToken, a blockchain-based real estate investment platform, for allegedly neglecting health and safety standards across over 400 residential properties.
Details of the Lawsuit
Detroit's lawsuit is described by city officials as the largest nuisance abatement case in the city’s history. It targets RealToken and 165 associated corporate entities for ongoing code violations and endangering tenant health and safety.
Complex Ownership and Property Issues
RealToken is facing allegations regarding neglected properties, which pose unsafe living conditions including structural decay and pest infestations. Its complex ownership model complicates accountability, allowing global investors to purchase fractional ownership in homes via cryptocurrency.
RealToken's Response and Legal Implications
RealToken claims it has been a victim of unscrupulous property managers and has assumed direct control of property management. The company states it is addressing the violations, but the process is expected to take time. The city seeks payment of $500,000 in outstanding blight tickets, and compliance oversight.
This case raises concerns about the effects of crypto-based real estate investment on urban communities. Detroit officials emphasize that innovation must not excuse property owners from fundamental responsibilities.
