Paraguay’s ousted president charged over banking scandal

The former president, who was placed under house arrest on Friday , was charged over the scandal. The Reuters news agnecy reported that Pena was charged with breach of trust and administration for personal gain. The scandal centres on Pena’s ties to Ueno, a digital bank that grew rapidly during his presidency, partly through an injection of more than $800m in public funds, and attracted millions of customers.

The bank’s collapse has prompted days of protests across Paraguay, with thousands taking to the streets demanding access to their savings. Some demonstrations have turned violent, with protesters clashing with police. Pena, who held a stake in Ueno’s parent company until March 2025, has denied wrongdoing, arguing that the bank’s problems were a regulatory matter.

Among the allegations against Pena are that he used his political influence to direct hundreds of millions of dollars in public funds into Ueno while shielding the bank from regulatory scrutiny as concerns grew over its risky lending practices.