Ex-Trader Tom Hayes Wins UK Appeal in LIBOR Scandal — Is His Name Finally Cleared?
Tom Hayes Wins LIBOR Appeal: A New Chapter in the World’s Biggest Rate-Rigging Scandal
Tom Hayes, the former trader branded as the mastermind behind the global LIBOR manipulation scandal, has successfully overturned his conviction in the UK — marking a major legal twist nearly a decade after his arrest.
LIBOR’s Fall Guy Fights Back — and Wins
Once the poster child for financial wrongdoing, Tom Hayes, a former UBS and Citigroup derivatives trader, was convicted in 2015 for conspiracy to manipulate the London Interbank Offered Rate (LIBOR) — a key global benchmark for interest rates.He served five years of an 11-year sentence, becoming the first individual jailed for LIBOR-related charges.
But on July 19, 2025, after years of legal efforts, Hayes won his appeal at the UK Court of Appeal, potentially rewriting the legacy of the scandal — and his own reputation.
The court ruled that the original prosecution failed to establish that Hayes’s conduct constituted criminal dishonesty under the standards of the time. The verdict doesn’t just clear Hayes’s name — it calls into question the legal foundation of the LIBOR prosecutions in the UK and beyond.
Tom Hayes Wins LIBOR Appeal: A New Chapter in the World’s Biggest Rate-Rigging Scandal
What Was LIBOR and Why Did It Matter?
LIBOR was once the most important interest rate in the world, influencing trillions of dollars in loans, derivatives, and contracts.Between 2005 and 2010, traders at multiple global banks were found to have colluded in manipulating LIBOR submissions to benefit their trading positions.
Hayes, then working in Tokyo, was accused of orchestrating requests to internal submitters and brokers to rig rates. While he never denied involvement in the process, he always claimed that it was industry practice and sanctioned by senior management — an argument now validated in part by the appeal.
A Landmark Ruling With Global Implications
This reversal could open the floodgates for other convicted traders to seek appeals or compensation. Hayes has consistently argued that he was used as a scapegoat for a systemic problem deeply embedded in banking culture.The UK's Serious Fraud Office (SFO) now faces scrutiny over its approach to prosecuting financial misconduct.
“I was the only one who went to jail for what was a market-wide practice,” Hayes told reporters outside court. “Today’s decision is not just justice for me — it’s justice for the truth.”
What's Next for Hayes — and for LIBOR's Legacy?
Though LIBOR has now been phased out and replaced by alternative benchmarks like SOFR (Secured Overnight Financing Rate) and SONIA, the legacy of the scandal still casts a long shadow over global finance.For Hayes, the appeal win may pave the way for full exoneration, reinstatement of his professional reputation, and potentially even a return to finance — though regulatory hurdles remain.
The broader message? In a post-crisis world still grappling with accountability, this case is a sharp reminder of how legal, ethical, and financial lines can blur — and who ultimately pays the price.
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By Claire Whitmore
July 23, 2025
By Claire Whitmore
July 23, 2025
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