An Indigenous man from Jervis Bay was held in an ACT prison for a month before federal police realised they'd mistakenly accused him of crimes that occurred past the NSW border.
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The case against Daniel Brown, 34, has now collapsed, and it is understood compensation for his incarceration could be an option.
Jervis Bay, well known to many Canberrans who visit the NSW south coast, is a Commonwealth territory, which is policed by the Australian Federal Police.
It is subject to ACT law and the jurisdiction of ACT courts, with Canberra magistrates sitting in Jervis Bay on a regular basis.
Brown, who lives in the Aboriginal community of Wreck Bay, to the south of the Jervis Bay Territory, was charged with three offences against his partner late last year.
He was accused of a threat to kill, assault occasioning actual bodily harm, and unlawful confinement.
Brown planned to fight the charges, entering not guilty pleas and making a bail application on December 23.
He appeared unrepresented to argue for his release, but failed and was remanded in custody.
He remained in the Alexander Maconochie Centre for more than a month until Tuesday, when the matter came back before the ACT Magistrates Court.
Commonwealth prosecutors had relisted the matter before the court because fresh information had come to light during continuing police investigations.
Police had realised that what they were alleging had occurred on the wrong side of the NSW border, meaning there was no jurisdiction to proceed with the case.
The prosecution offered no evidence for the three charges, and Brown, then represented by Dean Rutherford of the Aboriginal Legal Service, was released.
The court needed to adjourn his case briefly before it could deal with a breach of a good behaviour order, but Magistrate Bernadette Boss allowed Brown to be freed immediately.
She said he should spend no more time in custody.
Brown's breach of a previous good behaviour order occurred because he'd failed to answer letters sent by corrective services directing him to attend for supervision.
That good behaviour order was imposed as part of a sentence relating to the same complainant, the court heard.
Mr Rutherford said his client had changed address and forgot to tell authorities.
The breach was admitted and no further action was taken by Dr Boss.
"You've had an opportunity now to reflect on your responsibilities," she said.
