According to the Qur'an and assorted Hadith, Muhammad and his followers successfully wiped out the Jewish Banu Qurayza tribe in Medina, beheading all of the males (old enough to have pubic hair) and enslaving the remaining women and children. Slaves were generally sold at a slave market, while Muhammad kept one of the women for himself as a "Maiden Slave" (read: sex slave).

Some references from the Qur'an and Hadith:

And He brought those of the People of the Scripture who supported them down from their strongholds, and cast panic into their hearts. Some ye slew and ye made captive some. And He caused you to inherit their land and their houses and their wealth, and land ye have not trodden. Allah is Able to do all things

Qur'an 33:26-27

Narrated 'Aisha: When Allah's Apostle returned on the day (of the battle) of Al-Khandaq (i.e. Trench), he put down his arms and took a bath. Then Gabriel whose head was covered with dust, came to him saying, "You have put down your arms! By Allah, I have not put down my arms yet." Allah's Apostle said, "Where (to go now)?" Gabriel said, "This way," pointing towards the tribe of Banu Qurayza. So Allah's Apostle went out towards them.

Sahih Bukhari 4:52:68

Then they surrendered, and the apostle confined them in Medina in the quarter of d. al-Harith, a woman of B. al-Najjar. Then the apostle went out to the market of Medina (which is still its market today) and dug trenches in it. Then he sent for them and struck off their heads in those trenches as they were brought out to him in batches. Among them was the enemy of Allah Huyayy b. Akhtab and Kab b. Asad their chief. There were 600 or 700 in all, though some put the figure as high as 800 or 900. As they were being taken out in batches to the apostle they asked Kab what he thought would be done with them. He replied, 'Will you never understand? Don't you see that the summoner never stops and those who are taken away do not return? By Allah it is death!' This went on until the apostle made an end of them. Huyayy was brought out wearing a flowered robe in which he had made holes about the size of the finger-tips in every part so that it should not be taken from him as spoil, with his hands bound to his neck by a rope. When he saw the apostle he said, 'By God, I do not blame myself for opposing you, but he who forsakes God will be forsaken.' Then he went to the men and said, 'God's command is right. A book and a decree, and massacre have been written against the Sons of Israel.' Then he sat down and his head was struck off.

Ibn Ishaq

Then the Messenger of Allah commanded that ditches should be dug, so they were dug in the earth, and they were brought tied by their shoulders, and were beheaded. There were between seven hundred and eight hundred of them. The children who had not yet reached adolescence and the women were taken prisoner, and their wealth was seized.

Tafsir Ibn Kathir - The Campaign against Banu Qurayzah

The Prophet divided the properties, women, and children of Banu Quraiza among the Muslims after he had separated one-fifth for public purposes. Each man of the cavalry received two shares, one for himself and one for his horse. On that day, the Muslim force included thirty-six cavalrymen. Sa'd ibn Zayd al Ansari sent a number of Banu Qurayza captives to Najd where he exchanged them for horses and armour in order to increase Muslim military power

Muhammad Husayn Haykal - The Life of Muhammad

The Banu Qurayza were a tribe in Medina where Muhammad and his followers fled after leaving Mecca. During the Battle of the Trench, in which Medina was being attacked by Meccans in retaliation for Muhammad continually raiding their merchant caravans, it was suspected that a few of the leaders of the Banu Qurayza entertained the idea of negotiating a peace with the Meccans.

This had no effect on the outcome of the battle, in which the Meccans were repulsed.

The tribe was effectively wiped out of existence.

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