The majority of FTX's legal and compliance team quit Tuesday, Semafor reported, citing people familiar with the matter.

That could create a headache as the cryptocurrency exchange deals with a liquidity crisis and potential regulatory scrutiny.

The Semafor story notes that FTX's Sam Bankman-Fried is an investor in the news organization.

A representative for FTX declined to comment.

Cheyenne Ligon contributed reporting.

Read more: Binance Is Strongly Leaning Toward Scrapping FTX Rescue Takeover After First Glance at Books: Source

UPDATE (19:43 UTC): Adds note that FTX declined to comment on the reports.