Paraguay's Banco Uno Collapse Leaves 3 Million Stranded, President Under House Arrest

The collapse of digital lender Banco Uno in Paraguay has left approximately three million customers unable to access their savings, triggering a major financial and political crisis. President Santiago Peña, a close friend of Donald Trump, has been removed from office and placed under house arrest. Banco Uno, controlled by Grupo Vásquez, grew rapidly through acquisitions and managed about $850 million in government and pension funds. The central bank took control on November 3 after capital reserves fell below legal minimums, following allegations of improper lending to related companies. The crisis sparked protests and impeachment proceedings, leading to Peña's removal on November 6. He faces investigation over alleged ties to the bank, though he denies direct involvement.