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Balaji Threatens Exit Over Network School Probe

Network School founder Balaji Srinivasan is at odds with Malaysian authorities after an investigation into his Forest City tech community. The probe was sparked by allegations that the school was hosting Israeli citizens using second passports, which is against immigration laws in Malaysia.

The controversy has led to Srinivasan seeking a memorandum of understanding (MoU) with the Malaysian government, stating that he needs 'legal certainty' to continue investing in the country. Without it, he threatened to take his capital elsewhere.

'I'd like to have a document which says not just abstractly that tech is welcome … but rather that we're personally welcome,' Srinivasan said in a video directed at Malaysian Prime Minister Anwar Ibrahim.

The episode highlights the tension faced by crypto utopias, which aim to build digital-native communities with their own institutions and economies, yet rely on conventional states for legal certainty. Network School was launched in August 2024 in Johor's Forest City, a physical community of tech builders, creators, and founders.