Malaysian authorities ordered Network School, a "digital nomad" community in Forest City founded by U.S. investor and former Coinbase chief technology officer Balaji Srinivasan, to cease all operations effective July 22 after revoking its business license.
The Iskandar Puteri City Council made the decision following a review of inspection reports, enforcement findings and representations submitted by the company, Johor Chief Minister Onn Hafiz Ghazi said in a statement shared on X Tuesday.
"Enforcement action can only be taken after complaints and information are verified, inspections are conducted, non-compliance is identified and legal processes are completed," the statement read. "The duration of a premise's operation does not mean all its activities are always in compliance with licence conditions."
The order comes days after Malaysia’s Immigration Department said inspections at Network School found 266 foreign members had valid travel documents, following online claims that the facility was hosting Israelis in violation of local laws. The department said further compliance checks were ongoing.
Srinivasan later said the reports that the school was shutting down were "fake news," adding that the organization had received two notices related to licensing issues and would address them. He said the first notice involved changing the wording on a sign, while the second concerned the licensing of a coworking site created by joining two adjacent units.
