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Paraguay's president resigns after Ueno digital bank's collapse locks out millions of depositors
Summary
Paraguayan President Santiago Peña announced his resignation Thursday amid a political crisis after digital lender Ueno Bank collapsed and left millions of customers unable to access deposits, Cointelegraph and Decrypt reported.
Paraguay's central bank put Ueno into resolution after finding its solvency ratio at 5.56%, below half the 12% regulatory minimum, Cointelegraph said; Decrypt put the process announcement around Nov. 3 and said the bank claimed about 2.9 million customers, more than 60% of Paraguay's adults.
Peña faced scrutiny over former ties to Grupo Vázquez, which controls Ueno; Cointelegraph, citing AP, said he remained a business partner until March 2025, while Decrypt, citing Reuters, said he denied wrongdoing and sold his interest then. Decrypt also reported Paraguay's lower house voted 78-0 to impeach him minutes after the resignation announcement, sending charges to the Senate as Vice President Pedro Alliana prepared to take over.
Crypto users turned to digital assets for liquidity: X4T founder David Eisenmann told Cointelegraph customers were converting crypto into guaraníes or dollars to pay bills, and USDT listings on Bybit's Paraguay P2P market traded about 13% above the central bank's reference rate early Thursday. Decrypt framed the freeze as a self-custody argument for bitcoin while noting key-loss and volatility risks.
The central bank said it would start deposit-guarantee payments to eligible clients with balances up to 10 million guaraníes (about $1,630), with coverage up to about 228.3 million guaraníes per depositor (roughly $36,000–$37,200 depending on the outlet's conversion), and authorities detained Ueno executives, Cointelegraph reported.
Updates
- Update, : Update (Nov. 6 noon): Decrypt said Congress did not accept President Santiago Peña's resignation; the lower house had voted 78-0 to impeach, the Senate refused him 72 extra hours to prepare a defense and planned a Friday night removal vote with VP Pedro Alliana next in line. Decrypt added that Interior Minister Enrique Riera and central bank president Carlos Carvallo resigned, eight Ueno executives were arrested, prosecutors opened a criminal probe into Peña (which he denies), and protests continued outside Ueno HQ with savers burning cards; a new law requires most deposits returned within five business days while the deposit guarantee's first payouts are limited to small accounts.
Key facts
- Peña, in a video posted to X cited by Cointelegraph, said he was stepping down to preserve stability, social peace and democratic institutions and to protect Paraguayans who entrusted savings to the financial system.
- Decrypt quoted Peña: "My greatest wish is that the return of those funds be guaranteed, that the Deposit Guarantee Fund fulfill its purpose."
- Decrypt, citing AP, said Ueno held roughly $800 million in public-sector deposits, including pension and health funds.
- Tether CEO Paolo Ardoino wrote on X that "USDt is a lifeline for hundreds millions of people in the world," in response to Cointelegraph's coverage, Cointelegraph reported.
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