News Summary
A Wayne County Circuit Court judge has issued a temporary restraining order against Real Token, a blockchain real estate firm, preventing them from collecting rent until compliance with building codes is met. The lawsuit initiated by Detroit alleges public nuisance violations related to over 400 properties suffering from severe neglect. Tenants may now place future rents in escrow to protect from eviction. The city seeks $500,000 in fines and compliance with housing codes, aiming to improve hazardous living conditions reported by tenants.
Detroit – A Wayne County Circuit Court judge has issued a temporary restraining order (TRO) against Real Token, a Florida-based blockchain real estate firm, which prohibits the company from collecting rent on its properties until they meet building codes. The ruling, made by Judge Annette Berry on July 22, 2025, also prevents landlords associated with Real Token from evicting tenants living in homes lacking a certificate of compliance.
This legal action is part of a larger lawsuit initiated by the city of Detroit against Real Token and its co-founders, Remy Jacobson and Jean-Marc Jacobson, along with 165 other affiliates. The city alleges public nuisance violations in relation to over 400 residential properties in Detroit, citing substandard living conditions and neglect that directly affect tenants’ welfare.
As a response to the court order, tenants will need to begin paying their future rents into escrow accounts starting in August 2025, providing them with protection from eviction. The city has committed to assisting tenants in establishing these accounts and aims to help them navigate the escrow process house-by-house.
The lawsuit highlights that Real Token operates on a cryptocurrency model to offer fractional ownership of residential properties to international investors, which has reportedly led to an increase in neglected tenant living conditions. The city’s initiative follows claims of hazardous living environments, characterized by a lack of running water, severe heating issues, and persistent pest infestations.
Real Token has responded to these allegations by asserting its dedication to providing quality housing. The company has claimed that the actions taken by the city are obstructing necessary renovations, which they also cite as critical for improving property conditions. Despite these assertions, Judge Berry’s order is set to remain in effect for 90 days unless altered by the court.
The city of Detroit has indicated that the involved properties currently do not possess a certificate of compliance. They estimate that hundreds of thousands of dollars in unpaid blight violations are connected to these properties. In addition, the defendants are reported to have considerable outstanding property tax obligations.
Community frustration is palpable, as neighborhood residents express their discontent regarding the management of their living spaces. Many have articulated their concerns over the pervasive neglect and the systemic issues linked to Real Token’s operations. In addition, local officials have identified another 130 residential properties owned by Real Token that may potentially be incorporated into the ongoing lawsuit.
The legal complaint seeks $500,000 in fines for the alleged violations and demands compliance with housing codes for each property involved. Moreover, it stipulates that judicial oversight is necessary for the repair processes to restore the living conditions of the affected properties.
Reports submitted by tenants reveal dangerous living conditions, amplifying the urgency for accountability and reform. As Real Token contemplates its next steps in the legal process, the city remains vigilant in its efforts to ensure adherence to housing regulations, protecting tenant rights and enforcing standards that prioritize public health and safety.
Deeper Dive: News & Info About This Topic
HERE Resources
Detroit Files Historic Lawsuit Against Cryptocurrency Firm
Additional Resources
- Free Press: Judge Bars Real Token from Collecting Rent
- Crain’s Detroit: Real Token Ordered to Fix Hundreds of Rentals
- WXYZ: City of Detroit Files Lawsuit Against Company
- Wikipedia: Real Estate Law
- Metro Times: Wayne County Judge Bars Blockchain Slumlord
- Google Search: Real Token Detroit
