The 39-year-old is currently being held at Agrupacion Especializada jail after travelling with a fake passport, while reports suggest that he is also under investigation for further crimes.
It is a dramatic fall from grace for a player who won the Ballon d'Or in 2005 and was named world footballer of the year in both 2005 and 2006.
However, Paraguayan news outlet Hoy reports that he is still excelling on the football field having taken part in a prison futsal tournament and inspiring his team to victory.
The report claims that Ronaldinho scored five goals and created the other six for his side in an 11-2 victory in the final, despite initially refusing to take part in the tournament.
Ronaldinho won almost every major honour in football, including the 2002 World Cup and 1999 Copa America wirth Brazil and the 2006 Champions League with Barcelona.
Widely regarded as one of the best players of his generation, the playmaker also represented Gremio, Paris Saint-Germain, AC Milan, Flamengo, Atletico Mineiro, Queretaro and Fluminense during his illustrious career.