Autor Cointelegraph By Felix Ng

Balaji Srinivasan’s Network School, a community of “digital nomads,” is eyeing a new campus in Kazakhstan after its Forest City campus had its business license revoked over alleged premises-use violations. A memorandum of understanding was signed between Kazakhstan’s Minister of Digital Development, Innovation and Aerospace Industry, Zhaslan Madiyev and Srinivasan to establish the first Network School campus in Kazakhstan, according to a statement from the ministry. The Kazakhstan agreement gives the Network School a potential new base after its Johor operation was ordered to cease operations effective Wednesday. Kazakhstan has been positioning itself as an emerging technology hub, including plans for Central Asia’s first “crypto city” in Alatau. “Ironically, this whole drama with Balaji literally validated the network state thesis,” said Dragonfly Capital managing partner Haseeb Qureshi. “The whole idea of a network state is taking a dense group of talent and capital, and collectively negotiating with states. The Malaysia drama set up Balaji to negotiate better terms with another state to copy and paste the network there. ““Our new campus will become a haven for global techno-optimism, with expedited visas, streamlined redomiciliation, and active recruitment of talent,” Srinivasan said Tuesday.Network School faces loss of Malaysia Digital status The new memorandum of understanding with Kazakhstan comes as the Forest City campus faces regulatory action on several fronts. On Tuesday, the Iskandar Puteri City Council (MBIP) revoked the business license of NSO Malaysia Sdn Bhd, which operates the Network School, alleging the company breached licensing conditions and premises usage requirements. This led to the Malaysia Digital Economy Corporation (MDEC) announcing it is taking immediate steps to revoke the Malaysia Digital status of NSO Malaysia, which requires companies under the program to follow all local and federal laws. Malaysia Digital is a recognition awarded to qualified technology and digital companies, providing them with tax incentives, freedom of ownership and allowing the employment of local and foreign workers, among other incentives. Meanwhile, Onn Hafiz Ghazi, Chief Minister of Johor State, has urged Malaysia’s federal authorities to continue investigating whether the Network School violated immigration laws. Related: Balaji seeks Malaysia deal, threatens exit after Network School probe “This matter cannot be taken lightly, especially since Johor is a strategic entry point for the country bordering Singapore. Any weaknesses or abuse of the immigration system must be addressed promptly, firmly, and without compromise,” said Onn. On Friday, Srinivasan denied reports that the Network School was shutting down, claiming that it had received two notices, with one notice requiring it to “change the text of a sign” and the other regarding a coworking site, created by joining two adjacent units, that had a valid license on one side, not on the other. “We have a remedial period for both issues, and will remediate them shortly. But our members are otherwise unaffected,” he said. Cointelegraph reached out to Srinivasan and Network School for comment. Magazine: Binance & OKX users face $1,900 fines in Vietnam, Coinbase in China? Asia Express

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Celsius co-founders Shlomi Daniel Leon and Hanoch “Nuke” Goldstein have been ordered to pay over $6 million to settle Federal Trade Commission charges alleging they misrepresented the safety of the Celsius platform before the company collapsed. Goldstein, Celsius’ former chief technology officer, was ordered to pay $2.014 million under an order signed Monday by US District Judge Denise Cote. Leon, the firm’s former chief strategy officer, was ordered to pay $4.1 million under a separate order entered on June 29. The settlements extend the fallout from the 2022 collapse of Celsius beyond its former CEO Alex Mashinsky. The crypto lending platform, which held $25 billion in assets at its peak, owed its users $4.7 billion when it filed for bankruptcy in July 2022. The order also bars Leon from marketing or selling products or services that can be used to deposit, exchange, invest or withdraw assets, the FTC said in a statement Monday. “Similarly, Goldstein has agreed to a ban on marketing or selling retail products or services that can be used to buy, sell, deposit, withdraw, distribute or trade cryptocurrency.”Related: Celsius’ Mashinsky gets permanent trading ban in CFTC settlementFTC allegations against Celsius co-founders The FTC alleged that Celsius falsely told customers it held sufficient reserves to meet withdrawal demands, maintained a $750 million insurance policy covering customer deposits and did not issue unsecured loans. “The FTC, however, alleged that the promises were false and that its top executives continued to claim that customers’ deposits were safe days before the company filed for bankruptcy,” it said. Mashinsky settles FTC case for $10 millionIn April, Mashinsky agreed to an FTC settlement that permanently bars him from promoting asset-related products and required him to pay $10 million as part of a broader, partially suspended $4.72 billion judgment. The $2.014 million and $4.1 million payments from Goldstein and Leon, respectively, will also be credited against the $4.72 billion judgment. The judgments reflect the consumer harm alleged by the FTC. Separately, Mashinsky was sentenced to 12 years in prison in May 2025 after pleading guilty to commodities and securities fraud charges, with prosecutors saying he misled Celsius customers about the company’s profitability, investment risks and the safety of customer funds. Magazine: Binance & OKX users face $1900 fines in Vietnam, Coinbase in China? Asia Express

Cointelegraph is committed to providing independent, high-quality journalism across the crypto, blockchain, AI, and fintech industries.All news, reviews, and analyses are produced with full journalistic independence and integrity. For more details on our standards and processes, please read our Editorial Policy.

The White House’s top crypto adviser Patrick Witt said he will no longer take a leave of absence at the end of the month for military training, allowing him to remain at the White House to help advance the CLARITY Act in the Senate.“Last week, it was reported that I was set to leave for mandatory training as part of my service in the Georgia Army National Guard, right before Clarity hits the Senate floor,” Witt said in an X post on Monday. “While I remain committed to fulfilling my service obligation, I am grateful to report that my training has been deferred, and that I will be able to see this effort through to the end,” he added. Source: Patrick WittThe CLARITY Act, which would create the first comprehensive US regulatory framework for the crypto market, faces a make-or-break deadline to pass the Senate before the Aug. 8 recess. Witt is the White House’s lead negotiator on the legislation. Witt, who has served as the executive director of the President’s Council of Advisors for Digital Assets since August, had been expected to report for Judge Advocate General (JAG) training with the Georgia Army National Guard on July 27. The training will qualify him to serve as a legal officer in the Guard. Related: Democrats added certain consumer protection rules to CLARITY: Coinbase execAccording to a report from Crypto In America on Tuesday, Witt had already deferred his mandatory military training in April to remain at the White House to work on CLARITY Act negotiations, which stretched on longer than expected. This is the second time Witt has deferred his training.Harry Jung to leave White House Crypto CouncilWitt staying at the White House comes as Harry Jung, the Deputy Director of the President’s Council of Advisors for Digital Assets, announced he will leave his post. “In two weeks, I will leave government service with immense gratitude,” said Jung in a post to X on Monday. “These past two years transformed America’s position on crypto. I’m proud of all we accomplished.” Jung was originally slated to take over Witt’s responsibilities in the crypto council while he was on military leave, according to Crypto In America. Magazine: Peter Brandt predicts the exact day Bitcoin’s bear market will be over