TechFlow News, March 17: According to WIRED, RealT—a real estate tokenization platform founded by Canadian brothers Rémy and Jean-Marc Jacobson—is embroiled in a legal crisis stemming from widespread property mismanagement in Detroit.
RealT previously issued tokens at approximately $50 each, enabling global investors to hold fractional ownership stakes in real estate and earn rental income, with promised annualized returns of up to 12%. The platform held roughly 500 properties in Detroit, served over 16,000 investors from 150 countries, and managed a portfolio valued at approximately $150 million.
However, in the summer of 2024, the City of Detroit filed a civil lawsuit against RealT and its founders, alleging hundreds of public nuisance and regulatory violations across 165 of its LLCs, along with substantial unpaid fines and property taxes. Notably, 408 of its properties lacked valid occupancy certificates. A court promptly issued a temporary injunction prohibiting RealT from collecting rent or evicting tenants from noncompliant properties. In February 2026, RealT announced it would suspend rental distributions to investors and planned to sell a large number of properties; some investors characterized this move as “theft.”
