A Yellowknife man testified Grosco burst into his home on 52nd Street on Feb. 15 and terrorized him for three hours.
A woman in the house - who did not testify - escaped and called police, he said.
Grosco testified he was visiting his cousin and only became upset when the man grabbed his cousin, who has a physical disability.
He admitted he was intoxicated but denied terrorizing the man.
Judge Michel Bourassa said he did not find the accused's testimony "terribly impressive," but said the Crown's case lacked evidence that would prove the case beyond a reasonable doubt. He dismissed the charges.
"I can't go on smell in deciding a case," he said.