Detroit sues blockchain-based real estate company from Florida

Detroit sues blockchain-based real estate company over rentals

Its violations include a damaged roof, porch, windows, and grass and weeds out of control. This house is considered unlivable. This is part of the city's effort to beautify its neighborhoods by cleaning up homes that have been eyesores for years. It affects not only the city but also the neighbors.

DETROIT (FOX 2) - The City of Detroit is filing what is being called the largest lawsuit of its kind in city history in the ongoing fight against blight. 

The target of the lawsuit is a blockchain real estate company based in Florida.

Big picture view:

The violations listed include a damaged roof, porch, windows, and grass and weeds out of control. This house is considered unlivable. This is part of the city's effort to beautify its neighborhoods by cleaning up homes that have been eyesores for years. 

It affects not only the city but also the neighbors.

What they're saying:

Within seconds of arriving at this vacant home on Sunderland and Seven Mile in Detroit, FOX 2 met Sabrina Johnson, a frustrated homeowner with numerous complaints about living next door.

"The grass is out of control. The backyard is out of control. It’s a tree that’s uprooted out of the ground," Johnson said. "The garage is falling down. Then you have the window. Somebody came and took the whole window off."

Her unofficial list is about as long as the city’s formal violations on that same house. It’s one of more than 400 nuisance properties listed in the city’s lawsuit against companies, including Real Token LLC, which is based out of South Florida.

Dig deeper:

Real Token, or Real T, is known as a "shell company," meaning it exists only on paper. It allows global investors to get a share of U.S. real estate digitally. The city wants to hold these shell companies accountable for the lack of upkeep.

"The company made a number of promises as well in a Zoom call and a lot of subsequent calls as well," said City Council President James Tate. "Not one promise has been kept. They call. Not one thing has been moved. They’re not responsive. And they have not been paying their property taxes either. So, it’s personal. It’s personal."

The other side:

FOX 2 received a statement from Real Token, which says they haven’t formally received a lawsuit. However, they said they’ve also been victims of dishonest property management companies, who’ve made homes look like they’re falling apart. 

Real Token takes full responsibility and has invested in management to ensure this doesn’t happen again.