Paraguay widens probe into collapsed digital bank and installs new central bank head
SPY•Paraguayan prosecutors widened their investigation into the collapse of digital lender ueno, raiding its brokerage arm, as Congress approved a new central bank chief. The collapse has left millions of customers struggling to access their funds.
1. Probe expands
Prosecutors raided ueno’s brokerage arm as they widened an investigation into the digital lender’s collapse. Images released by prosecutors showed torn documents, including fragments that appeared to be due diligence reports and email correspondence.
2. New central bank leadership
Congress approved President Pedro Alliana’s nomination of economist Jorge Schreiner to replace former central bank chief Carlos Carvallo. Former banking regulator Fernando Rivarola was named to the bank’s board; a July report by Rivarola warning about ueno was later leaked to local media.
3. Political and financial fallout
The investigation has led to the ousting of former President Santiago Peña, Carvallo’s resignation and the arrest of former ueno executives. Peña and Carvallo have been charged over alleged breach of trust and administration for personal gain, and placed in pretrial detention; both deny wrongdoing. Ueno’s collapse has left millions of customers struggling to access their funds, and an adviser at foreign-exchange brokerage Freex said authorities’ response would be crucial to containing contagion and preserving the financial sector’s credibility.
