Three men, aged 19, 46 and 49, all from South Norwood, were arrested under section 4a of the Public Order Act along with a a 49-year-old from Lambeth and a 55-year-old from Beckenham after they handed themselves in last night. After it's set alight, the group can be heard chuckling and cracking jokes.
DC Ben Rouse, who led the investigation, said: "This was a substantial fraud, made all the more deplorable by the fact that it was committed in the immediate aftermath of the Grenfell Tower fire, with the money set aside to help those directly affected by the tragedy".
Since the video appeared it has been widely condemned with the Prime Minister Theresa May calling it "utterly unacceptable" and Home Secretary Sajid Javid described it as "disgusting, shameful, behaviour".
As the fire climbs up the model building, one of the people question whether they should have put the tower on upside down, because the fire started on the 10th floor. To mock the disaster in such a crude way is vile.
In the footage, bystanders could be heard mockingly saying: "Help me, help me!" and "Jump out the window!"
London Fire Commissioner Dany Cotton, who was at the scene of the harrowing blaze, said the video was "appalling and disturbing".
"It can not be justified on any level".
Another says: "Here we go", as the fire takes hold.
Some partygoers were aware of this: at least one could be heard commenting the bonfire was "really bad taste".
MEND, an anti-Islamophobia organization, said the "sickening Islamophobic" video amounted to a hate crime.
Grenfell United, an organization fighting for justice for the fire victims and families, called the video "disgusting". We hope that the police are taking this seriously. "We can't change the way they think, but they need to understand they are the minority".
Metropolitan police are appealing for information as to the source of the video.
The Justice4Grenfell campaign group, which includes survivors and families of the dead, said it was "shocked at the inhumanity and callousness" of those involved.
London mayor Sadiq Khan said: "I utterly condemn this sickening video".
A video has emerged on social media showing a group laughing at the victims of the fire tragedy while burning a cardboard model.