On Friday, a new cryptocurrency called $LIBRA was launched by entrepreneur Hayden Davis, CEO of a crypto investment firm called Kelsier Ventures. Right after it was launched, the $LIBRA coin’s value skyrocketed, then plummeted within hours, seriously hurting the finances of many hopeful investors.

The scandal transcended Argentina’s financial circles and became an international affair, since Argentinean president and Trump’s no. 1 fan Javier Milei now faces impeachment threats after he endorsed the cryptocurrency on social media. Milei used his X account to promote the crypto coin, saying it was designed to spur “economic growth by funding small businesses and start-ups.” Bolstered by such high-profile support, the cryptocurrency’s value briefly hit $4 billion. But its value quickly started to tumble, prompting some to call it a hoax or scam. As $LIBRA’s value took a nosedive, Milei deleted his post.

Critics questioned whether this was an example of a “rug pull” scam, in which the initial investors drive the value up, only to quickly sell their investments, leading to an asset’s swift collapse. There are already at least 112 criminal complaints related to the $LIBRA scam. According to official sources, as of Sunday afternoon, 111 digital complaints had been filed in various federal courts, and one in-person complaint had been filed at a police station. Court hearings started on Monday are being led by federal judge Maria Servini and prosecutor Eduardo Taiano. The prosecutor will have to determine, from this flood of complaints, how many can be attributed to Milei and other members of his governing party, La Libertad Avanza. At the same time, international media are reporting that international law firms specializing in crypto are also preparing massive lawsuits against Milei. For example, the Burwick Law firm has posted an advertisement on social media seeking to attract thousands of scam victims.

Among the whistleblowers who have already presented legal charges in several courts against Milei around the country are right-wing politicians such as Agustín Rombolá from the Juventud Radical Porteña, NGOs such as La Ciudad Somos Quienes la Habitamos, as well as writers, intellectuals, and so on.

The Working Class Can Emerge Stronger from Milei’s Crisis

In Congress the political opposition has held several gatherings since the weekend. Representatives in Congress from the Peronist bloc organized in Unión por la Patria party have been advocating impeachment, while the right-wing parties such as Unidad Civica Radical (UCR) have been discussing impeaching the president; the Left, represented by the Party of Socialist Workers (PTS), part of the Workers Left Front (FIT), has been demanding that the president appear before Congress so that he can be questioned in front of the whole nation. The FIT representatives, such as Myriam Bregman, Nico del Caño, and Christian Castillo, have argued that, while Milei should be prosecuted for his crimes, people cannot trust the courts, which have been siding with the president since he came to power.

From their seats, PTS-FIT representatives have been calling the working class and the oppressed to take advantage of the government’s weakness and take to the streets.

The crisis is developing rapidly. The latest events could end up being anecdotes on the long list of absurdities put forward by the Argentinean president, but at the moment they are affecting his credibility, one of the few things keeping him in power. Having assumed office amid great institutional weakness (a minority in the National Congress, no governors of his own, a dysfunctional new party), the president has so far relied on his demagoguery and deep rejection of the previous governments’ failures to maintain his popularity.

But things haven’t gone as smoothly as Milei wished, so the crypto scandal is the cherry on top of the cake, after a series of political missteps. So far, the government has relied on the support of Big Capital, the support in Congress of sectors of the opposition (including the Peronists), and the passivity of the union leadership. Milei’s government has also relied on harsh repression against protesters.

But something is changing. It had already been hinted at in recent weeks. Milei’s speech full of hate, bigotry, and discrimination at the World Economic Forum backfired. A crowd rejected him in the streets on February 1, demonstrating the immense political and social opposition that exists. There was also noise brewing from above. The “markets” and the IMF have doubts about the sustainability of Milei’s economics.

Until now, the broader masses have been passive, but they have suffered harsh attacks during Milei’s government, attacks not only on their democratic rights but also on their pockets, with the harsh austerity imposed by the government. While the congressional representatives from the PTS-FIT have been demanding accountability and calling for Milei to be prosecuted for his crimes, they strongly believe and are agitating for taking advantage of the crises to strengthen the resistance against Milei from our workplaces, schools, and communities.

As explained by Fernando Scolnik, editor of La Izquierda Diario,

The government’s recent political and moral crises improve the balance of power for class struggle to erupt. For each conflict to triumph, for each demand to be met. From the workers of the Hospital Bonaparte that have been fighting austerity and bigotry to people organizing against the layoffs, we need to unify our struggles against the Far Right in power. We need the feminist movement, the LGTB+ community, and the human rights movement against the genocide in Argentina, the student movement to reemerge and to reclaim the streets once again. No trust should be placed in the National Congress, which has voted with Milei several times now. No solution for good, for the majority of the Argentinean people will come from there.

For the revolutionary Left in Argentina, the situation has opened an opportunity. Taking to the streets, supporting every fight, raising all our demands together as one — this seems to be the hopeful message that the Left is putting forward, even agitating for the idea that the Argentinean working class needs a general strike to defeat the government and its plans. As Scolnik explains, “The economic and social disaster that affects the Argentinean people will not be solved with the recipes of the past. We need an anti-capitalist and socialist path.”