The Federal Deposit Insurance Corporation has opened an investigation into Voyager Digital Ltd’s advertising of deposit accounts for cryptocurrency purchases as being FDIC insured. First reported in the Wall Street Journal an FDIC official has now confirmed the story.

In marketing materials, Voyager had made statements like, “In the rare event your USD funds are compromised due to the company or our banking partner’s failure, you are guaranteed a full reimbursement (up to $250,000),” and, “Your USD is held by our banking partner, Metropolitan Commercial Bank, which is FDIC insured, so the cash you hold with Voyager is protected.”

Customers had assumed that meant when Voyager collapsed, their funds were protected, however FDIC insurance only applies to the failure of participating banks, not private companies like Voyager.

Voyager had opened a For Benefit of Customers account at Metropolitan Commercial Bank, a small New York City bank, which would hold customer funds used to buy cryptocurrency, which the company then held. Customer funds held as cash in the back were protected, but all other assets are now at risk, as the company undergoes bankruptcy proceedings.

The FDIC did not comment on the probe.

Voyager has said in filings it has more than $110 million of cash and owned crypto assets on hand. In its bankruptcy filing it said it intends to continue to pay employees in the usual manner and continue their primary benefits and specific customer programs uninterrupted.