RealT Detroit tokenized real estate project faces lawsuits and compliance crisis

RealT, a tokenized real estate platform founded by Canadian brothers, once attracted over 16000 investors worldwide by splitting properties in Detroit and other areas into approximately $50 worth of encrypted tokens for sale, and its asset portfolio reached approximately $150 million at one point. However, since 2024, the Detroit city government has filed civil lawsuits against RealT and its 165 related LLCs, accusing them of hundreds of "blemishes" violations, tax arrears, and pointing out that at least 408 properties lack compliance certificates, serious disrepair, and safety hazards. The court has prohibited RealT from collecting rent or evicting tenants until the relevant properties are restored to compliance. RealT denies systematic neglect of maintenance, plans to sell a large number of properties and suspend rent distribution to investors, while turning to "pre built" token projects in Colombia and Panama.