Balaji Srinivasan’s experiment in building a real-world startup community just ran into the kind of problem you can’t debug. Malaysian authorities have opened a formal immigration investigation into the Network School, a co-living and co-working space for techno-optimists nestled in Forest City, Johor, after social media allegations that Israeli nationals were using second passports to enter a country that doesn’t recognize Israeli travel documents.

Johor Menteri Besar Datuk Onn Hafiz Ghazi directed federal agencies, including the Home Ministry, the Immigration Department, police, and customs, to verify the identities of participants and their compliance with local laws. The announcement came on July 14, and the scope of the probe extends well beyond passports.

What the Network School actually is

The Network School is the physical manifestation of Srinivasan’s “network state” thesis. The idea, broadly, is that digitally connected communities can form their own quasi-independent governance structures and economies.

Launched in 2024, the program offers three-month residential stints in Forest City for a membership fee starting at $1,500 per month. That covers accommodations, meals, and access to facilities. Notably, the school accepts cryptocurrency as payment.