Malaysia Probes Tech Commune Founded by Ex-Coinbase Executive Over Israeli Entry Claims

KUALA LUMPUR — Malaysian authorities announced Tuesday they are investigating a co-living community for so-called “digital nomads” after allegations surfaced that Israeli citizens may have entered the country illegally by using passports from other nations.

The community in question, known as The Network School, was founded in 2024 by Balaji Srinivasan, a former chief technology officer at Coinbase and a U.S.-based investor. Its website describes it as a “frontier community of techno-optimists” with a mission of “turning internet communities into physical startup societies.”

Srinivasan has publicly stated that the community is situated on a man-made island “near Singapore.” Social media posts and news reports suggest the location is Forest City, a massive $100 billion development built on reclaimed land in Malaysia’s Johor state.

Malaysia is a strong supporter of the Palestinian cause and maintains no diplomatic relationship with Israel. The country’s Immigration Department prohibits Israeli passport holders from entering Malaysia, though there is no law barring individuals with dual citizenship from entering using a non-Israeli passport.

Johor Chief Minister Onn Hafiz Ghazi was the first to call for a formal investigation on Tuesday, responding to social media users who alleged that Israeli nationals had used second passports to gain entry into the country through The Network School.

Onn Hafiz also announced via a post on X that Johor state agencies would review the commune’s adherence to local rules, including business licenses, building use, and permitted activities.

Malaysia’s Home Affairs Ministry confirmed in an official statement that the immigration department, police, and other relevant agencies had begun looking into the matter in response to the concerns raised by Onn Hafiz.

Investigators will work to identify who was present at the commune, verify the travel documents they used, and determine the stated purpose of their entry into Malaysia, the ministry said.

“If the investigation finds any violation of the law, misuse of immigration passes, provision of false information or any other offense that affects national security and interests, strict action will be taken without any compromise,” the ministry’s statement read.

The Network School had not responded to requests for comment at the time of this report.