Paraguay’s pro-Israel ex-president taken into custody over alleged bank crisis role

A Paraguayan judge ordered former president Santiago Peña into pretrial detention over his ties to collapsed digital lender ueno. Peña faces charges of breach of trust and administration for personal gain. His attorney says he pleads not guilty. Former central bank chief Carlos Carvallo was also detained. The crisis follows Peña's removal from office on Friday.

A Paraguayan judge on Saturday ordered former president Santiago Peña to be held in pretrial detention at a military facility while prosecutors investigate his ties to digital lender ueno, whose collapse has left millions of customers struggling to access their accounts. Peña has been charged with breach of trust and administration for personal gain. His attorney, Ricardo Preda, said Peña is pleading not guilty and expects the case to be dismissed. Former central bank chief Carlos Carvallo was also ordered detained on charges including breach of trust and producing false public documents. Prosecutors allege Peña used his position to influence government decisions to keep public money deposited at ueno despite financial ties to the lender. Peña, a shareholder in ueno's holding company until March 2025, denies wrongdoing. His ouster on Friday brought Vice President Pedro Alliana to power. The charges carry up to 10 years in prison each. The central bank said $160 million has been paid out to nearly 1.2 million savers under the deposit guarantee scheme.