Paraguay seized its largest digital bank Ueno, freezing accounts of 3 million customers including $380M in state pension funds.
Regulation & Gov ·
Paraguay's Central Bank seized Ueno Bank after its solvency ratio fell below half the legal minimum, affecting approximately 3 million depositors and freezing roughly $380 million held by the state pension fund. The intervention locked all account access through the bank's digital platform and card services, leaving an estimated 60 percent of the country's adult population without immediate access to their funds. Authorities ordered detention of eight executives including the bank's founder and president, while Central Bank leadership resigned following criticism over regulatory oversights and conflicts of interest. Protests erupted in the capital as citizens and pensioners gathered at closed branches demanding access to their money and accountability.