Among those exonerated were Jurgen Mossack and the late Ramon Fonseca, founder of Mossack Fonseca, the defunct law firm at the centre of the Panama scandal.
A court in Panama has acquitted 28 people charged with money laundering in connection with the Panama Papers scandal, BBC reported. The ruling brings to an end the trial that began in April.
Among those exonerated were Jurgen Mossack and the late Ramon Fonseca, founder of Mossack Fonseca, the defunct law firm at the centre of the Panama scandal.
The Panamanian judge found that the evidence against Mr Mossack was "not sufficient and conclusive" to determine the criminal responsibility of the accused.
The judge also added that the evidence in this case did not comply with due process after authorities raided the office of the now-defunct firm.
Prosecutors had accused Mr Mossack, Mr Fonseca, and others of creating offshore companies and using complex transactions to hide money obtained from illegal activities related to a car wash corruption scandal involving Brazilian construction company Odebrecht.
The Mossack Fonseca trial stemmed from Panama Papers, an ICIJ-led investigation that exposed the widespread use of offshore accounts for tax evasion and money laundering. That investigation led to global tax reform, the recovery of more than $1.36 billion in tax revenue and a sharp decrease in corporate registrations in Panama.
During the trial, the prosecution sought the maximum sentence of 12 years for money laundering for both Mr Mossack and Mr Fonseca, who died in hospital in May, according to Reuters.
Both Mr Mossack and Mr Fonseca denied they, their firm, or their employees had acted illegally.
The trial took testimony from 27 witnesses and considered over 50 pieces of documentary evidence, according to Panamanian local news reports.
The judge has now dropped all criminal charges against the accused and lifted personal and property precautionary measures against all the defendants, according to a judicial statement quoted by ABC News.
The Panama Papers saw a leak of more than 11.5 million financial and legal records exposing a system that enables crime, corruption, and wrongdoing, hidden by secretive offshore companies.
PREMIUM TIMES was part of the investigations that saw the ICIJ publish a searchable database that strips away the secrecy of nearly 214,000 offshore entities in 21 jurisdictions.
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The database also displays information about more than 100,000 additional offshore entities ICIJ had already disclosed in its 2013 Offshore Leaks investigation.
ICIJ said it was publishing the information in the public interest.
More than 370 reporters in nearly 80 countries participated in the investigation. Their efforts uncovered the secret offshore holdings of 12 world leaders, more than 128 other politicians and scores of fraudsters, drug traffickers and other criminals whose companies had been blacklisted in the US and elsewhere.
The Panama Papers underscore the fundamental injustices and inequalities created by the offshore system, media commentators and political leaders say, the ICIJ said.
In responding to the Friday court ruling, Gerard Ryle, executive director of the ICIJ, said: "This outcome underscores the challenges in prosecuting financial misconduct. While the court did not hold these defendants accountable, the enduring impact of our investigation persists. By revealing hidden truths, as we did in the Panama Papers, we empower the public with information they need to demand accountability and push for reforms.
"Financial misconduct affects everyone, especially those who rely on public services and safety nets. Tax evasion and money laundering exacerbate inequality and diminish government's ability to provide essential services such as education and health care," Mr Ryle said.
