RealToken to Wind Down $140M Tokenized Real Estate Book After Operational Breakdowns

RealToken (RealT), a blockchain platform that marketed fractional ownership of U.S. residential property through crypto tokens, will voluntarily liquidate its portfolio. Co-founder JeanMarc Jacobson said on July 2 the company plans to sell all holdings after years of operational failures, housing-code violations, and investor complaints. The assets to be liquidated are valued at about $140 million and consist primarily of single-family homes in Detroit. Roughly 36,000 investors worldwide, including around 14,000 in France, now face uncertainty over potential recoveries. RealT's Detroit bet, about 700 homes representing 83% of total holdings, drew repeated enforcement actions tied to code violations, unpaid property taxes, and blight-related fines issued by the City of Detroit. Many units reportedly sat vacant and maintenance fell behind, prompting the city to pursue legal action. In April 2026, a Detroit court appointed an independent fiduciary under a nuisance-abatement agreement to oversee the properties. Rental distributions that had been paid weekly later stopped. Jacobson's liquidation announcement aligns with investor concerns that the portfolio's condition and liabilities could materially reduce proceeds. The company is expected to sell approximately 700 Detroit homes, many described as being in poor condition and carrying unpaid tax bills. Reports also indicate class-action lawsuits are being organized, and potential criminal complaints may be filed in France. The case has renewed scrutiny of tokenized real estate models. Concentrating 83% of a $140 million portfolio in a single distressed market amplified the impact of code issues, vacancies, and tax arrears into a broader, system-wide problem. The April court-appointed fiduciary is widely viewed as a sign that internal governance and operating infrastructure were insufficient to manage the underlying assets.