WuBlockchain
Malaysian authorities in Johor state revoked the business licence of Network School, the education venture founded by former Coinbase chief technology officer Balaji Srinivasan, and ordered all operations at its Forest City campus to cease from July 22.
The decision followed an investigation into allegations involving Israeli participants. Local immigration authorities, however, said individuals inspected in connection with the probe held valid travel documents, leaving the underlying cause of the licence action partially unclear.
Why it matters
Network School sits inside Forest City, a special economic zone originally developed as a China-Malaysia flagship project and more recently marketed as a permissive hub for crypto and AI founders. A licence revocation there is the kind of precedent that makes founders evaluating cross-border bases recalibrate quickly, even before any broader Malaysian policy change materialises. Srinivasan himself has been a vocal proponent of network states and sovereign-individual experimentation, which puts the venture under higher political visibility than a typical coding academy.
Market impact
The move is unlikely to move crypto or broader tech prices on its own. The investable signal is geographic: any founder or fund that was sizing Forest City as a base now has a concrete data point on the operational risk of hosting politically sensitive programming there. Watch for other education or residency-style ventures in the same zone to issue reassuring statements, or to start looking at alternative Southeast Asian jurisdictions.
Frequently asked questions
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What happened to Network School in Malaysia?
Johor state authorities revoked Network School's business licence and ordered all operations at its Forest City campus to cease effective July 22, following an investigation into allegations involving Israeli participants.
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Who founded Network School?
Network School was founded by Balaji Srinivasan, the former chief technology officer of Coinbase and a prominent advocate of network states.
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Where is Network School based?
The campus is located in Forest City, a special economic zone in Johor, Malaysia, originally developed as a China-Malaysia flagship project.
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What were the allegations behind the licence revocation?
The revocation followed an investigation into allegations involving Israeli participants, though immigration authorities said those inspected in connection with the probe held valid travel documents.
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Why does this matter for crypto and tech founders?
Forest City has been marketed as a permissive hub for crypto and AI founders. A licence revocation there is a concrete data point on the operational risk of hosting politically sensitive programming in the zone.
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