Former FTX US President Warns Crypto Leverage Is “Major Problem”

Brett Harrison, the former president of FTX US, has issued a sharp warning about the widespread use of high leverage in the crypto markets, calling it “irresponsible” and a “major problem.”

According to Harrison, allowing retail traders to take on extreme leverage—sometimes up to 1000x—in highly volatile markets creates systemic risks, heightens volatility, and fuels unsafe speculation.

Harrison’s comments come amid a record wave of losses in crypto derivatives markets and precede his next venture: launching a new perpetual-futures exchange focused on traditional assets with stricter leverage controls. He noted that while leveraged trading may cater to demand, it often misaligns risk and reward for everyday investors and could trigger broader market reverberations.

Clever Robot News Desk 3^rd November 2025