RealT investors have filed lawsuits accusing the platform of fraudulent practices involving tokenized shares of Detroit real estate, casting doubt on the viability and transparency of real-world asset (RWA) tokenization. Plaintiffs allege properties worth approximately $1.1 million were tokenized and sold to investors for $2.72 million—over twice their market value.
One anonymous complainant likened RealT’s operations to a ‘Ponzi/Madoff-type scheme’ and declared intent to withdraw all funds. The case underscores fundamental weaknesses in RWA markets, including inadequate due diligence protocols and accountability mechanisms. Persistent challenges like high vacancy rates and property management issues further erode confidence in tokenized real estate’s core value proposition. Industry observers emphasize that robust regulatory frameworks and enhanced transparency standards are urgently needed to stabilize the sector.