Police in Paraguay detained former President Santiago Peña on Friday after the Prosecutor’s Office issued an arrest warrant over alleged embezzlement linked to the collapse of digital bank Ueno. The action was taken on the same day the bank’s accounts were frozen and Ueno was placed under external administration by the Central Bank on November 3.
According to TASS reports, the warrant charges Peña with abuse of trust and suspects him of moving public funds into Ueno while regulators overlooked risky practices. The case follows Peña’s impeachment, which supporters say was prompted by conflict‑of‑interest allegations tied to Ueno Bank. Roughly three million customers had their accounts frozen in the fallout.
In a separate report by the Prosecutor’s Office, Peña was said to have announced his resignation the day before the arrest, but the lack of a quorum prevented Congress from voting to accept or reject it. Under Paraguay’s constitution, all former presidents become lifelong senators unless impeached, a status that no longer applies to Peña following the impeachment.
Lawmakers have accused Peña of using his position to steer hundreds of millions of dollars in public funds into Ueno, a claim still unverified in public court filings. The Ueno Bank collapse remains the latest banking crisis in Paraguay, affecting 7 million people in the country.
