The former Polly Peck tycoon Asil Nadir has vowed to issue a writ against police for wrongful arrest after his release from custody.
Mr Nadir, 69, who is on bail and faces a multimillion-pound theft trial next year, was arrested at his home on Saturday for allegedly breaching a midnight to 6am curfew.
He emerged from Charing Cross police station in London later that evening without being charged and with a police apology.
"Unfortunately, I have been a victim of an unlawful arrest, claiming that I had broken my bail conditions. That was not the case," he said.
Mr Nadir fled Britain in 1993 charged with 66 offences in connection with the collapse of his company but returned from northern Cyprus last year saying he wanted to fight the case.