The demise of FTX will almost certainly result in actual regulatory reforms, either through legislators or through federal agencies themselves.

FTX declared bankruptcy last Friday, just days after suspending withdrawals and a little more than a week after it was revealed that FTX's sister company Alameda Research's financial sheet had an unexpectedly high quantity of FTT, an exchange token produced by FTX.

As a result of the collapse, lawmakers of both political parties in the U.S. Congress are pushing for additional action. According to Ron Hammond of the Blockchain Association, some lawmakers are even talking about scheduling hearings by the end of the year.

The U.S. Department of Justice, the U.S. Securities and Exchange Commission, the Bahamas' Financial Crimes Investigation Branch, the Bahamas' Securities Commission, and other state and federal agencies have all opened or extended investigations into the company.

When asked about the solvency of his exchange, CEO Sam Bankman-Fried responded that FTX was "fine" before the turmoil began.

The collapse is "a dramatic demonstration of both the inherent risks of digital assets and the critical weaknesses in the industry that has grown up around them," said Rep. Brad Sherman (D-Calif.), a member of the House Financial Services Committee.

Senators Sherrod Brown (D-Ohio) and Elizabeth Warren (D-Mass.) have also called for probes into the collapse.

According to a Coindesk-cited attorney, the SEC may have an easier time launching the probe simply because of its mandate.

The fact that Bankman-Fried has tweeted his way through his company's demise may be a complicating factor - at least for FTX.

On Nov. 7, a few days after CoinDesk first reported on Alameda's balance sheet, the former crypto prodigy tweeted, "FTX has enough to cover all client holdings."

He even said that rumors regarding his company's solvency were spread by a rival (Binance), but that "assets are fine."

He tweeted after that week that FTX.US was also fine and entirely liquid. Hours thereafter, FTX.US informed users that withdrawals might be suspended.

The exchange's connections to Alameda will also attract attention; if Bankman-Fried was sending customer funds to Alameda and losing those assets, that may become an issue in court.

FTX appears to be geared up for these inquiries, as Ryne Miller, the company's U.S. general counsel, has already instructed the entire organization to preserve papers.

"The SEC is in a much better position to go to court and get a freeze [on assets] if they believe there's a reason to do that," the attorney said. "The SEC also has a less cumbersome process for subpoenaing testimony and freezing documents."