Detroit Sues Crypto Real Estate Firm Over Property Neglect

Detroit has filed its largest-ever nuisance abatement lawsuit against RealT, a Florida-based blockchain real estate company, and its co-founders, citing severe neglect of over 400 residential properties. Many of these properties, situated in low-income neighborhoods, suffer from hazardous conditions including absence of heat, running water, and basic maintenance, rendering them frequently unlivable. The city alleges that RealT’s network of 165 LLCs and its use of cryptocurrency for selling fractional ownership to foreign investors hinder accountability, leaving tenants vulnerable. RealT attributes the neglect to local property management companies but city officials contend that RealT failed to address violations and uphold promises to tenants. Residents report significant blight and decline in neighborhood safety due to the neglected properties. The lawsuit seeks to compel RealT and its affiliates to bring all properties up to code and prevent further harm to Detroit families.