Balaji Srinivasan has suspended his investments in Malaysia and is seeking a formal deal with the government after authorities investigated his Community Network School in Forest City, Johor.
Coinbase’s former chief technology officer said he wanted written assurance that the project and its participants were welcome before committing more capital.
The dispute began after allegations on social media claimed Israeli citizens were staying in the community while using passports from a second country. However, Malaysia’s Immigration Department later said all 266 foreigners inspected held valid travel documents. Authorities said additional checks would continue if new evidence raised questions about identity, permits or immigration rules.
Balaji seeks written agreement with Malaysia
Srinivasan said he wanted more than broad statements supporting technology investments. In a video posted on X and addressed to Prime Minister Anwar Ibrahim, he requested a document confirming that Network School can continue to operate and invest in Malaysia with greater legal certainty.
Should the global tech community continue to invest in Malaysia?
Given recent events, I raise this issue with respect for the consideration of Prime Minister Yang Amat Berhormat Dato’ Seri Anwar bin Ibrahim (@anwaribrahim), for the people of Malaysia and for our friends in… pic.twitter.com/0kvDSfF1z9
– Balaji (@balajis) July 16, 2026
“I would like to have a document that says not just in the abstract that technology is welcome…but rather that we are personally welcome,” Srinivasan said.
He suggested the agreement could take the form of a memorandum of understanding or amendments related to a special economic zone provision.
$122 million expansion plan suspended
Meanwhile, Srinivasan said Network School would suspend any further investment in Malaysia until it receives “sufficient assurance” that similar conflicts will not occur again. The decision includes a planned $122 million expansion of the community, according to its release.
He also warned that the project could move its capital elsewhere. “Otherwise, we will happily go elsewhere because I don’t want to be where we are not welcome,” Srinivasan said. However, he did not propose alternative locations or give a deadline for reaching an agreement with Malaysian authorities.
Immigration checks find valid documents
The investigation follows claims shared by activist group Malaysian Protest 4 Palestine in an Instagram post, which accused Network School of harboring Israeli entrepreneurs. Malaysian authorities subsequently reviewed the status of foreign residents at the Forest City site.
However, the Immigration Department said its first inspection found valid documents for 266 foreigners from 40 countries. Reuters also reported that Malaysia prohibits entry to Israeli passport holders without special permission, but does not have a specific law prohibiting Israelis from entering using another country’s passport.
As a result, document checks failed to establish the social media allegations, while officials said further investigations could continue if new information emerges.
Network School faces new test in Forest City
Srinivasan launched Network School in 2024 as a brick-and-mortar community for founders, technologists, and other builders. The project is taking place in Forest City, a large development in Johor near Singapore, and is part of its broader idea of internet-based communities building permanent physical hubs.
As crypto.news reported in June, Forest City also hosted Q-Day, a blockchain security event where Srinivasan was among the speakers. Most recently, he was announced as a keynote speaker at Bitcoin Asia 2026 in Hong Kong.