Network School founder warns Malaysia tech goals at risk from immigration probe

Balaji Srinivasan, the former Coinbase CTO and Andreessen Horowitz partner, built Network School as a tangible proof of concept for the “network state” , his vision that an internet-based community of engineers and founders could eventually function like a sovereign nation. This week, however, a real-world government reminded him who ultimately controls the borders.

On July 15, Srinivasan revealed that Malaysian authorities have launched an immigration investigation into Network School, a project he had hoped would serve as a blueprint for decentralized, borderless living. The probe threatens to undermine the very ambitions he and his supporters hold for the country’s tech sector.

Network School was designed to operate as a working prototype of a network state, where digital citizens collaborate, build, and govern themselves without relying on traditional geographic boundaries. Srinivasan has long argued that such communities could eventually challenge the authority of conventional nations, offering a new model for global talent mobility and innovation.

But the Malaysian government’s scrutiny highlights a stark reality: even the most ambitious decentralized experiments remain subject to the laws and enforcement of physical states. The investigation could jeopardize Malaysia’s broader tech goals, which have sought to attract foreign founders and digital nomads as part of its push to become a regional innovation hub.

Srinivasan’s warning is clear. If Malaysia cracks down on Network School, it risks sending a message that the country is not truly open to radical experimentation in governance and technology. For a nation hoping to compete with Singapore and other tech-friendly neighbors, that could be a costly signal.

The outcome of the probe may determine whether Malaysia becomes a launchpad for the network state movement or just another place where bold ideas hit the wall of immigration law.