RealT Tokens' risk profile has materially deteriorated since mid-2025. A court-appointed independent fiduciary now controls RealT's entire ~700 Detroit property portfolio through at least October 2026; investor rental distributions are halted. Separate investor fraud lawsuits allege $2.72M in tokens were sold for 39 properties RealT never owned; the SEC is investigating and Michigan's AG reportedly seeks criminal charges. The combination of operational collapse, securities fraud allegations, and court-supervised administration creates multi-year resolution uncertainty. This is no longer speculative risk — it is active counterparty failure in progress.
Risk Breakdown
Top Risks
Court-appointed independent fiduciary Charles Bullock has controlled RealT's ~700 Detroit properties since April 2026, with authority to sell, demolish, or renovate; investor rental distributions are halted pending resolution of compliance issues — target of 210 properties compliant by October 2027 at minimum
Investor lawsuits allege RealT collected $2.72M for tokens representing 39 Detroit properties it never actually acquired; SEC is investigating the token offering as potential unregistered securities; Michigan AG reportedly seeking criminal charges — no formal SEC enforcement action confirmed as of June 2026
RealT's property management operation has collapsed to ~5 employees against 500+ properties; 300+ properties face tax foreclosure; ~$125K in tenant rent was diverted to unauthorized accounts in violation of court orders
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