According to BFM News, on July 15, Malaysia's Johor state government ordered an investigation into Network School, a private residential community founded by former Coinbase CTO Balaji Srinivasan, over allegations that Israeli citizens used third-country passports to participate in the project.
Local authorities directed the Interior Ministry and relevant law enforcement agencies to verify the identities, nationalities, and entry purposes of involved individuals, and to assess whether the project's operations require registration or approval under Malaysian law. The government also plans to review compliance with venue licensing, building usage, land use, accommodation operations, and commercial activity regulations, with enforcement action pending findings.
Network School, located in Forest City, Malaysia, is a membership-based residential community built on Srinivasan's "Network State" concept, charging monthly membership fees starting at $1,500 and offering accommodation, dining, fitness, and co-working services.