OneCoin confirmed Friday it purchased UniverTeam, a Brazilian pyramid scheme, adding 120,000 people in Latin America to its 1.4 million members. The deal sparked outrage from UniverTeam investors who claim they lost money and can no longer access funds.

OneCoin CEO Ruja Ignatova called the acquisition a strategic move to expand into Latin America. She stated the partnership would provide access to unique opportunities for thousands in the region. Ignatova herself has been a fugitive since 2017, facing fraud and money laundering charges.

UniverTeam's collapse became evident on social media in February. Investors reported frozen funds due to system errors and unfulfilled refund requests. One Colombian investor stated that 30 million pesos invested in November with partners had not yielded returns. Complaints escalated, with users accusing UniverTeam leader Alexandre Arenales of orchestrating similar schemes and blocking withdrawals through fabricated wallet errors. Co-founder Daiane Barros also faced accusations of deceiving many.

Multiple users reported submitting withdrawal requests that were never processed. These claims paint a picture of UniverTeam's insolvency prior to the OneCoin acquisition.

OneCoin itself operates as a Ponzi scheme. Its model relies on new members recruiting others to generate revenue. The company has faced legal challenges and bans in various countries. The UniverTeam buyout appears to be an attempt to inject capital into OneCoin's faltering operations.

South America represents a new market for OneCoin, populated by individuals potentially unaware of the company's history. By absorbing UniverTeam's membership, OneCoin gains access to a base already familiar with pyramid schemes, making them potentially susceptible to another.

For UniverTeam's victims, the acquisition offers little hope of recovering lost funds. They are now integrated into a larger scheme with a documented history of financial misconduct and disappearances, including that of its founder. The Financial Crimes Enforcement Network (FinCEN) has previously issued warnings regarding OneCoin.