Shadow defence secretary Jim Murphy called on Mr Fox to make a statement in Parliament, and, along with shadow chancellor Ed Balls, described the situation as a "murky business".
Mr Murphy said: "There's questions about the ministerial code and whether it has been breached, about the professional relationship between Liam Fox and the former best man at his wedding, and a very murky business about links and access to information, that I think is very unsettling."
He has written to the prime minister calling for an independent investigation into the allegations, and claiming the current MoD inquiry is an "inadequate response".
The letter goes on to state: "It is important that the breadth of this inquiry matches the severity of the accusations."
Deputy Labour leader Harriet Harman said: "It's not just the questions of national security and access to highly sensitive information, it's also the issues of probity and procurement.
"There's now a further question about Mr Fox's integrity."
Liberal Democrat Cabinet minister Chris Huhne said Mr Fox should be regarded as innocent until proven guilty.
Conservative MP Daniel Kawczynski, who supported Mr Fox in his bid to become Tory leader in 2005, said he thought the defence secretary could survive in the Cabinet.
"He is a very hard working MP and secretary of state and he is someone who I have found to be an honourable and decent man, and so I am very disappointed about the whirlwind that the media and others are looking at in obviously making it very difficult for him at the moment," he told BBC Radio 4's The World This Weekend.
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