Malaysia says it is investigating tech commune run by ex-Coinbase executive

Malaysia's Home Affairs Ministry has launched an investigation into The Network School, a co-living community for "digital nomads" established by former Coinbase chief technology officer Balaji Srinivasan. The probe was initiated after allegations surfaced that the community may have included Israeli nationals, potentially violating the country's strict immigration laws.

Malaysia maintains a strong stance in support of the Palestinian cause and does not have diplomatic relations with Israel. Israeli passport holders are explicitly barred from entering the country. However, the ministry noted that dual citizens are not prohibited from traveling on non-Israeli passports.

The Network School, founded in 2024, is described as a "frontier community of techno-optimists" aiming to transform internet communities into physical startup societies. Social media posts and press reports suggest its location is Forest City, a major development on reclaimed land in Malaysia's Johor state, near Singapore.

Johor Chief Minister Onn Hafiz Ghazi had previously called for an investigation into claims that the school hosted Israeli nationals using second passports. State agencies are also reviewing the commune's compliance with local regulations, including licenses and business activities. The Home Affairs Ministry stated that if any violations of law, misuse of immigration passes, or offenses affecting national security are found, strict and uncompromising action will be taken.

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If the investigation finds any violation of the law, misuse of immigration passes, provision of false information or any other offense that affects national security and interests, strict action will be taken without any compromise.