Malaysia’s Home Affairs Ministry has launched an investigation into Network School, a co-living tech community founded by former Coinbase CTO Balaji Srinivasan in the massive, largely empty Forest City development in Johor. The probe centers on allegations that Israeli nationals entered the country using dual-citizenship passports, sidestepping Malaysia’s immigration ban on Israeli passport holders.
What happened and why it matters
Johor Chief Minister Onn Hafiz Ghazi has demanded that authorities investigate Network School’s visa practices, business activities, and building uses within the Forest City development. Malaysia does not maintain diplomatic relations with Israel, and Israeli passport holders are barred from entry. The allegation that some community members circumvented this policy using secondary passports from other countries is what triggered the probe.
Authorities plan to verify the identities, travel documents, and stated entry purposes of suspected individuals. This marks the first major regulatory scrutiny of Network School since its founding.
Network School launched in 2024 as a physical experiment in what Srinivasan calls “network states,” essentially communities organized around shared values and technology rather than traditional national boundaries. The community charges participants roughly $1,500 per month for co-living arrangements in repurposed buildings within Forest City, a sprawling development estimated at $100 billion that has struggled to attract residents since its inception. By mid-2025, the community had reportedly grown to accommodate around 400 to 550 participants.
