Balaji Srinivasan has put new investment in Malaysia on ice and is pressing the government for a formal legal guarantee before committing more capital to his Network School community in Johor’s Forest City.
The former Coinbase CTO — who launched Network School in 2024 as a physical hub for founders, technologists and builders — said in a video on X addressed to Prime Minister Anwar Ibrahim that he wants written assurance that the project and its participants are “personally welcome.” He said broad public statements aren’t enough and suggested a memorandum of understanding or changes tied to a special economic zone as possible solutions.
Why: the pause follows an investigation triggered by social-media allegations that Israeli citizens were living at the Forest City site using second-country passports. Malaysian authorities inspected the community and, according to the Immigration Department, found valid travel documents for 266 foreigners from 40 countries. Reuters has noted that Malaysia generally bars entry to Israeli passport holders unless special permission is granted, but there’s no specific law banning Israelis who enter using another country’s passport. Officials said further checks will be carried out if new evidence emerges.
What’s at stake: Srinivasan said Network School is halting a planned $122 million expansion until he receives “sufficient assurance” that similar disputes won’t recur. He warned the project could relocate if Malaysia can’t provide the legal certainty he’s seeking, though he didn’t name alternative locations or set a deadline for a deal.
Context: the probe was prompted by a post from activist group Malaysian Protest 4 Palestine. Network School operates in Forest City, a sprawling Johor development near Singapore that has already hosted crypto-related events such as the Q-Day blockchain security conference where Srinivasan appeared as a speaker. He’s also slated as a headliner for Bitcoin Asia 2026 in Hong Kong.
Why crypto-watchers should care: the episode highlights how political sensitivity, immigration rules and social-media claims can quickly affect on-the-ground developer ecosystems and investment flows. For international crypto and tech projects, Srinivasan’s demand for a written, enforceable assurance underscores the premium builders place on legal clarity and government engagement when picking physical hubs.
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