Woofun AI reports that the Johor state government in Malaysia has formally requested a federal investigation into Network School, a private community founded by former Coinbase CTO Balaji Srinivasan. The probe is triggered by allegations that certain Israeli nationals utilized third-country passports to participate in the initiative.

Authorities are directing the Ministry of Home Affairs and relevant agencies to verify the identities, nationalities, and entry purposes of involved individuals. Officials will also assess whether the school’s operations require legal registration or approval under Malaysian law. Additional reviews will cover compliance with site permits, building usage, land use, accommodation operations, and commercial activity regulations. Network School, located in Forest City, operates on a "Network State" concept with monthly membership fees starting at $1,500, providing accommodation, dining, fitness, and shared office spaces.