RealT issued tokens at approximately $50 per token, allowing global investors to own fractional shares of properties and receive rental income, with promises of annual returns of up to 12%. The platform held approximately 500 properties in Detroit, serving over 16,000 global investors from 150 countries, with a total portfolio valuation of around $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 nuisances and code violations across its 165 LLCs, along with substantial unpaid fines and property taxes, including 408 properties lacking compliant occupancy certificates. The court subsequently issued a temporary injunction prohibiting RealT from collecting rent or evicting tenants in the non-compliant properties. In February 2026, RealT announced a suspension of rental distributions to investors, planning to sell off a large number of properties—some investors characterized this move as "theft."
Canadian real estate tokenization platform RealT faces Detroit property scandal and lawsuit
TechFlowShare
Summary
The Canadian real estate tokenization platform RealT is facing scrutiny in Detroit amid a civil lawsuit and property violations. The city has accused RealT and its founder of hundreds of public nuisances, unpaid taxes, and illegal occupancy permits across 408 properties. A court has halted rent collections and evictions in non-compliant units. In February 2026, RealT suspended rent distributions and announced plans to sell major assets, triggering backlash from investors. The case has raised concerns regarding liquidity, cryptocurrency markets, and compliance with CFT (Countering the Financing of Terrorism) regulations.
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