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This Former Coinbase CTO Spent Millions Building a Utopia for Tech Founders. Then Malaysia Shut It Down.

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Why This Matters

This story highlights the challenges and risks of innovative, ambitious projects aimed at creating alternative communities or 'utopias' for tech founders. It underscores the regulatory hurdles and geopolitical considerations that can impact such ventures, emphasizing the importance of compliance and local context for tech entrepreneurs. For consumers and the industry, it serves as a reminder of the complexities involved in building autonomous tech-centric communities across borders.

Key Takeaways

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Balaji Srinivasan believes America is heading toward collapse. So he set out to build his own country instead. The former Coinbase CTO spent two years running the Network School in a ghost city in Malaysia, where founders paid $1,500 a month for room, board and classes on a campus that also included a high-end gym and meals designed by longevity guru Bryan Johnson, according to the Wall Street Journal. The plan called for online communities to pool resources and eventually declare sovereignty.

But residents complained of moldy rooms, no nightlife and a lack of women. An Instagram post claiming the school housed Israeli citizens, which Malaysia restricts without special permission, triggered a government investigation. Officials found no foul play, but shut the project down anyway over separate licensing issues.

Srinivasan hasn’t slowed down. Hours later, he posted a video signing a deal to open a new campus in Kazakhstan.