Reporting · companies
Paraguay seizes Ueno Bank, a digital lender that claimed three million customers
Regulators seized Ueno Bank, a Paraguayan digital lender, as its solvency ratio fell below half the legal minimum, according to CryptoPotato.
What happened
Regulators seized Ueno Bank, a Paraguayan digital lender, as its solvency ratio fell below half the legal minimum, according to CryptoPotato.
Why it matters
The seizure halted app, card and transfer services at a bank that claimed millions of customers, a reminder of the custody risks raised in the report.
CryptoPotato reported that regulators in Paraguay have seized Ueno Bank, a digital lender based in the country. The central bank said the institution's solvency ratio had fallen below half of the legal minimum, and resolution proceedings have been begun against it. The Ueno app, cards and transfers have stopped functioning.
According to the report, Ueno had claimed about three million customers and roughly $850 million in public funds under administration, figures the bank itself put forward. Prosecutors have charged bank executives and associates. Carlos Carvallo resigned after the crisis escalated.
CryptoPotato also reported that President Santiago Peña denies any wrongdoing connected to a stake held by Grupo Vázquez. Lawmakers rejected Peña's resignation, and impeachment proceedings continue. Meanwhile the central bank is paying deposit guarantees of up to ₲228.3 million.
The article also argues that Bitcoin self-custody avoids bank freezes of the kind described in the case.
Sources
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