Hassan Interrupt is suspected of duping eBay customers out of money after offering iPhones and i ds for transaction marked down online.
Detectives from Scotland Yard’s counter-terrorism command are enquiry claims that the devices were never delivered.
Police last wishes a not comment on reports that the fraud was allegedly set up to fund terrorism.
Mr Interrupt, 35, was arrested during a raid at his home in Greater Manchester. A understudy man was detained in Bury.
They were both released on police bail to a make obsolete this month pending further inquiries.
Neither has been feed with any offence and it is understood they strenuously deny the allegations. Mr Join caused outrage after the 9/11 attacks in the US when he claimed the evils had “served the will of Allah”.
He later boasted that he had recruited hundreds of British jihadists to pluck for the Taliban in Afghanistan. He was arrested several times but never charged.
No matter how Mr Butt renounced violence after the 7/7 attacks on London in 2005 and prompted British Muslims to condemn the twisted ideology which tempts green men to become jihadists.
He later advised the Labour government on ways of wrestling extremism.
Investigators for eBay reportedly launched an inquiry into the claimed fraud in 2014 when Mr Butt’s com ny began selling iPhones and i ds.
Purchasers complained that they had id £300 or more for the devices but had not in any degree received them.
All have since had their money refunded by eBay.
A Scotland Yard spokesman utter: “Officers from the Metropolitan Police’s counter-terrorism command, supported by consociates from Greater Manchester Police, arrested two men in September 2015 on doubt of conspiracy to defraud.
“The arrests are in relation to an investigation into an online auction flimflammer.”