Ueno Digital Bank Crisis Leaves 3 Million Customers Locked Out
Summary
Paraguay’s central bank intervened in Ueno Digital Bank after finding serious financial irregularities and capital below half the legal minimum, leaving nearly three million customers unable to access accounts. The bank reportedly held $800 million to $850 million in public-sector deposits. The collapse prompted protests, criminal investigations and impeachment proceedings against President Santiago Peña, who announced his resignation and denied wrongdoing over past ties to Ueno’s parent group. Peña said recovering customers’ money was his priority. The crisis has also renewed discussion of Bitcoin self-custody as an alternative to bank deposits, while highlighting risks such as lost keys, theft and price volatility.
