Paraguayan prosecutors charged ousted President Santiago Peña on Saturday over the collapse of Ueno Bank, which froze the savings of nearly three million customers and toppled his government.
Ueno Bank, a digital lender that served nearly 60 percent of Paraguay's adult population, was placed under resolution by the central bank on November 4 after regulators found it failed to meet minimum solvency requirements. Peña was impeached on Friday after Congress rejected his resignation, and Vice President Pedro Alliana assumed the presidency. Prosecutors charged Peña with breach of trust and management for personal gain, and a judge ordered his detention in a military facility.
The bank launched in 2021 and quickly became a key part of the country's payment system, holding about $850 million in public funds, including the state pension fund, as of June. Peña, who served as central bank governor until March 2025, was a business partner of the group that owned Ueno Bank until that date. After winning the 2023 election, he appointed former Ueno Bank president Carlos Carvallo as central bank governor. Carvallo resigned this week and was also charged on Saturday with breach of trust, making false public documents, and management for personal gain.
Nearly 2.94 million customers were locked out of their accounts when the bank's app went dark on November 4. The central bank has paid out about $160 million from the state deposit insurance system to nearly 1.2 million savers, but protests continue as customers demand access to their money. Opposition Senator Rafael Filizzola called the case "the biggest corruption scandal in our democratic history." Former Finance Minister Manuel Ferreira compared it to Bonnie and Clyde, saying, "They didn't rob us with a gun, they robbed us with an app. The leader of the gang was the president of the republic."
Peña denies the charges. His lawyer Ricardo Preda said he pleaded not guilty and argued that removing the president during the bank's resolution could itself destabilize the country. On Monday, police raided Peña's mansion and discovered a vault hidden behind a false wall, reportedly equipped with an Israeli security system and iris scanner. The raid is part of an investigation into alleged financial misconduct linked to Ueno Bank, which reportedly financed the $1 million-plus residence.
