The Libor convictions of two British former traders were overturned in the US appeals court today.
The 2nd U.S. Circuit Court of Appeals in New York ruled that the constitutional rights of Anthony Allen and Anthony Conti had been violated.
Specifically, the appeals court ruled that their Fifth Amendment right against self-incrimination had been breached.
Allen and Conti, both formerly of Dutch bank Rabobank, were convicted over Libor rigging in 2015 and were given jail sentences in March last year. They were the first people in the US to face trial and be charged for their roles in manipulating the interbank lending rate.
In the 81-page document, the appeals court reversed the judgements of conviction and dismissed the indictment.
It was ruled that Allen and Conti’s Fifth Amendment rights were violated because the defendants’ “compelled testimony” in the UK was used against them in the US court. This was because a witness had been exposed to this testimony.
Under the Fifth Amendment, “the use of compelled testimony in American criminal proceedings applies even when a foreign sovereign has compelled the testimony”, the appeals court said.