🧞 HE DREAMED OF THE NEW YORK STOCK EXCHANGE. NOW HIS BANK IS AT THE CENTER OF ONE OF PARAGUAY’S BIGGEST SCANDALS!
A 36-year-old entrepreneur, triathlete, luxury car enthusiast, and owner of a financial empire. Until recently, Federico Miguel Vázquez was planning to take his Paraguayan company public on the New York Stock Exchange.
Today, his name is linked to the collapse of Ueno Bank — a digital bank trusted by millions of people.
How did it all unravel?
Ueno grew rapidly and attracted around 3 million customers in a country with a population of approximately 6.5 million.
But on November 3, 2026, the Central Bank of Paraguay intervened in the financial institution. An inspection revealed a critical problem: the bank's solvency ratio had fallen below half the legal minimum.
The regulator began resolution proceedings, and customers' access to their money was disrupted.
The problem turned out to be much bigger than a single bank.
According to Reuters, Ueno managed around $850 million in public funds. Regulators were also examining suspicious lending operations involving companies linked to Grupo Vázquez, the business group owned by the bank's owner.
An investigation began. Prosecutors charged 27 people in a case involving alleged financial misconduct. Vázquez himself was also the subject of a criminal investigation. Charges do not in themselves establish guilt.
Then the crisis escalated into a political scandal: on November 5, Paraguayan President Santiago Peña announced his resignation amid the fallout from the bank's collapse and questions about his past ties to Grupo Vázquez.
And the most painful part is the impact on ordinary people.
Millions of customers were left in limbo. Stories emerged of depositors who lost access to their savings. According to media reports, the crisis also affected thousands of employees at companies belonging to the group, leaving some without their paychecks.
Paraguay does have a deposit guarantee system: up to 228.3 million guaraníes per depositor at one bank. But amounts above the established limit require a separate decision as part of the resolution process.
The main lesson of this story: a polished brand, rapid growth, and a well-known founder do not guarantee financial stability.
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