
Johor and federal authorities examined social media allegations that some residents used third-country passports; Malaysia’s Immigration Department later said all residents held valid travel documents and no enforcement action was taken.
Malaysia’s Immigration Department said on July 15, 2026 that residents of The Network School, the tech-focused co-living community founded by former Coinbase CTO Balaji Srinivasan in Forest City, Johor, held valid travel documents after a preliminary review of allegations tied to Israeli passport restrictions. The review followed social media claims that some Israeli nationals may have entered Malaysia using third-country passports, an issue sensitive because Malaysia does not recognize Israeli passports. Earlier scrutiny had widened to include identities, stated entry purposes, registration requirements, and compliance with land use, lodging and commercial rules, but the immigration check concluded with no detentions, deportations or other enforcement action reported. Founded in 2024 as a physical experiment in Srinivasan’s “network state” concept, the community has reportedly grown to around 400 to 550 participants and is not tied to any specific token scheme.