Paraguay's ueno bank collapse freezes accounts and impeaches President Pena

Paraguay's digital bank ueno has collapsed, freezing nearly three million customer accounts and triggering the impeachment of President Santiago Pena, who now faces charges of breach of trust and administration for personal gain. He was arrested and held in pretrial detention. The central bank placed ueno into resolution after finding breaches of solvency requirements, locking millions of savers out of their accounts. Pena, a close ally of US President Donald Trump, denies wrongdoing and pleaded not guilty. Vice President Pedro Alliana was sworn in as his replacement, while prosecutors also charged former central bank chief Carlos Carvallo. Ueno, launched in 2021, had attracted roughly half of Paraguay's population as customers and held about $850 million in public funds. The central bank has paid out $160 million to nearly 1.2 million savers under a deposit guarantee scheme, but analysts warn the crisis may damage Paraguay's reputation as a stable investment destination.