Rabbi Baruch Chalomish has been found not guilty by a Manchester Crown Court jury on two counts of intent to supply drugs discovered by police at his home in Salford and a Manchester city centre apartment.
The rabbi pleaded guilty to possession of Class A drugs found at his home and the Shudehill apartment.
His co-defendant, Nasir Abbas, was convicted, in his absence, of intent to supply. A warrant is out for his arrest. The judge described him as "the main player" in the case.
Rabbi Chalomish will be sentenced on December 17.
His defence counsel Jonathan Goldberg QC said: "My client is too emotional to speak but he is grateful to the jury for their verdicts vindicating that he was only a cocaine user and never a supplier.
"He now hopes the shame and degradation he has suffered will serve as an example to others to shun drugs."