As the defendants, the co-founders of Realtoken Remi and Jean-Marc Jacobson, as well as 165 affiliated legal entities that could allow the state of hundreds of real estate. The Detroit Administration claims that Realtken does not fulfill the basic safety obligations as a lessor.
City inspectors from the Department of Safety of Buildings and Environmental Protection documented violations at real estate objects: structural damage, the presence of rodents, mold growth, clogging in the sewage and illegal connection to energy supply. It was found that 53 objects pose a threat to the health and safety of tenants. The city authorities also argue that Realtken used a fake network of companies to hide the true right of property and avoid responsibility.
The property is divided between numerous investors, many of which are not involved at the local level and are not interested in the real estate remains suitable for living. As a result, many houses remain empty and eventually fall. The Detroit administration asked the court to oblige RealToken to carry out urgent repair of buildings, open accounts of conditional deposit of the rent and hold the Jacobson brothers accountable for refusing to finance the maintenance of buildings.
Realtken opened in 2019 as a platform for real estate tokenization in the Ethereum network. Later, the platform switched to Gnosis Chain. Realtoken uses a blockchain for real estate tokenize and the sale of shared ownership to investors. The developers argue that investors can acquire rental real estate shares for cryptocurrency from anywhere in the world, and this working model reduces barriers to entrance to illiquid markets.
According to the forecast of Deloitte, by 2035, the tokenized real estate market can grow to $ 4 trillion. Last year, the first deal in the history of the country was held in France to buy real estate for bitcoins.
Source: Bits
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