Detroit has initiated a significant lawsuit against RealToken LLC and 165 affiliated companies, marking it as the largest nuisance abatement case in the city's history. The lawsuit alleges that tenant conditions across more than 400 properties under the company's management have drastically declined, with tenants facing a lack of basic supplies such as heat and running water. The city claims violations of health and safety regulations, asserting that tenants live in locations plagued by significant disrepair, including structural damage and unsanitary conditions. The lawsuit seeks judicial orders for repairs, establishment of rent escrow accounts, and personal liability for the company's founders. Detroit officials have highlighted the negative impact on neighborhoods, citing that the properties contribute to criminal activities due to neglect and hazardous living situations. RealToken's platform promotes fractional ownership in real estate via blockchain, but the complaint suggests that while the company profits, tenants endure substandard living conditions without proper maintenance or legal protections.

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