Balaji seeks Malaysia deal, threatens exit after Network School probe
Balaji Srinivasan is seeking a memorandum of understanding with Malaysia to give his Network School legal certainty after authorities investigated the Forest City tech community over claims it was hosting Israeli citizens using second passports. Malaysia’s Home Affairs Ministry said initial checks found all 266 foreign residents had valid documents, but the probe followed an activist social media post alleging the school was a meeting place for Israeli entrepreneurs. Srinivasan said he wants written assurance that his community is personally welcome and can keep investing in Malaysia. He warned that without clearer guarantees, he may move capital elsewhere and has paused further investment, including a planned $122 million expansion, until the issue is resolved. The episode shows how crypto and digital-native communities still depend on traditional states for legal and political legitimacy.
