UK Supreme Court Quashes Libor, Euribor Convictions

The UK Supreme Court has overturned the criminal convictions of former traders Tom Hayes and Carlo Palombo for manipulating Libor and Euribor benchmark interest rates, finding they were denied fair trials due to judicial misdirection regarding whether their actions were dishonest. Hayes, who served over five years of a 14-year sentence (later reduced to 11), and Palombo, sentenced to four years, have long maintained they were scapegoats amid broader industry practices. The ruling comes after similar U.S. appellate decisions and represents a major setback for the Serious Fraud Office, whose prosecutions led to over $10 billion in global fines. Both men described devastating personal consequences from their convictions, including family breakdown and harsh prison conditions. The SFO has announced it will not pursue a retrial. The case has raised new questions about the validity of other rate-rigging convictions and the legacy of the Libor scandal.