A day after his impeachment, Paraguay's ousted president Santiago Peña is ordered held at a military facility

A Paraguayan judge on Saturday ordered former President Santiago Peña held in pretrial detention at a military facility while prosecutors investigate his ties to the digital lender ueno, whose collapse has left millions of customers struggling to reach their money, Reuters reported.

Judge Humberto Otazú ordered the detention a day after Peña was removed from office, saying it was necessary to ensure he remained in the country while the case proceeds. Peña has been charged with breach of trust and administration for personal gain; prosecutor Nancy Salomón said each charge carries up to 10 years in prison. His attorney, Ricardo Preda, said Peña is pleading not guilty.

Prosecutors allege Peña used his position to influence government agencies and state-owned entities to keep large amounts of public money deposited at ueno while he maintained financial ties to the lender. Peña was a shareholder in ueno's holding company until March 2025 and has denied wrongdoing, calling the bank's problems a regulatory matter.

The judge also ordered former central bank chief Carlos Carvallo into pretrial detention. Vice President Pedro Alliana was sworn in Friday to complete Peña's term through August 2028. The central bank said the equivalent of $160 million had been paid out to nearly 1.2 million savers under the state deposit guarantee.