RealT's Tokenized Real Estate Empire in Detroit Falls into 'Abandonment' and Legal Quagmire

According to WIRED, the tokenized real estate platform RealT, founded by Canadian brothers, sold properties in Detroit and other locations by splitting them into cryptocurrency tokens priced at approximately $50 each. These tokens were marketed to over 16,000 global investors, claiming annual returns of up to 12%. At its peak, the asset portfolio reached around $150 million, and the platform touted itself as 'one of the world's largest tokenized real estate platforms.' Starting in 2024, the Detroit city government filed civil lawsuits against RealT and its 165 related LLCs, accusing them of hundreds of urban 'blight' violations, unpaid taxes, and alleging that at least 408 properties lacked compliance certificates, suffered from severe disrepair, water leakage, fire hazards, and other issues. Some properties were reportedly occupied by gangs acting as 'black landlords.' The court subsequently prohibited RealT from collecting rent or evicting tenants until the properties were brought into compliance. RealT attributed the issues to property management companies and local partners, denying systemic neglect. The platform is currently planning to sell off a large number of properties and suspend rent distribution to global investors, while shifting its focus to launching 'preconstruction' token projects in Colombia and Panama.