The case should be “struck off” because of lengthy delays in bringing him to trial, a judge ruled.
Mr Malema was charged in 2012 with money laundering, racketeering and corruption related to a government contract worth $4m (£2.5m).
He denied the charges, and said they were politically motivated.
Mr Malema formed the Economic Freedom Fighters (EFF) party in 2013 following his expulsion from the governing African National Congress (ANC).
He is a fierce critic of President Jacob Zuma, and has campaigned against corruption.