Balaji Srinivasan, founder of the Network School tech community in Malaysia’s Johor state, is pushing for a formal agreement with the Malaysian government after authorities launched an immigration probe into his Forest City campus over allegations it was sheltering Israeli nationals travelling on second passports.
Probe Triggered by Social Media Accusation
Malaysia’s Home Affairs Ministry confirmed on Tuesday that it was investigating the Network School following claims posted on Instagram by activist group ‘Malaysian Protest 4 Palestine,’ which accused the campus of becoming a ‘gathering place for Israeli entrepreneurs.’ Initial checks of all 266 foreign residents at the site found that every individual held valid travel documents.
Israeli passport holders are forbidden from entering Malaysia, a Muslim-majority country, without written permission from the Malaysian Ministry of Home Affairs. Malaysia does not recognise Israel and maintains no diplomatic relations with the state.
Srinivasan Issues Direct Message to Prime Minister Anwar Ibrahim
In a video directed at Prime Minister Anwar Ibrahim posted on Thursday, Srinivasan said he wants a written commitment from the Malaysian government that his community is personally welcome, not just a broad statement supporting technology investment.
‘I’d like to have a document which says not just abstractly that tech is welcome but rather that we’re personally welcome,’ Srinivasan said.
He added: ‘If not, then we will readily go somewhere else because I don’t want to be where we’re not welcome.’
Srinivasan did not specify the precise form such a document should take, but said it could be a memorandum of understanding or an amendment to a special economic zone provision.
$122 Million Expansion Frozen Pending Assurances
Alongside the diplomatic push, Srinivasan announced he is suspending all further investment in Malaysia, including a previously announced $122 million plan to expand the Network School community, until he receives what he called ‘sufficient assurance’ that similar incidents will not happen again.
The former chief technology officer of Coinbase launched Network School in August 2024 at Forest City in Johor, a development located roughly one hour from Singapore. The campus is positioned as a physical hub for technology builders, creators, and startup founders.
Crypto Utopias Still Depend on Sovereign States
The episode highlights a tension faced by many so-called crypto utopias, which aspire to build digital-native communities with their own institutions and economies, but still depend on conventional states for legal certainty.
The Malaysian government has not responded publicly to Srinivasan’s request, and the Home Affairs Ministry investigation remains open. No findings have been announced, and initial checks did not substantiate the allegations that prompted it.
