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Moazzam Begg was arrested with three others in dawn raids in Birmingham on Tuesday.

It emerged yesterday he was handed the cash in 2010 to buy his silence over claims he was tortured at the notorious US prison camp. It had been thought he had received a six-figure sum.

He had accused the British Government of knowing about alleged abuse by America at the detention camp.

Begg, 45, was held for nearly three years as a suspected al-Qaida recruiter before being released in 2005.

The “hush money” deal included a gagging order so he can never talk about what happened to him.

Yesterday, police continued to quiz Begg on suspicion of attending a terror training camp and organising terrorism overseas.

He was nabbed at the £395,000 house in Hall Green which he bought for cash with his compensation.

It comes as security chiefs warned Syrian terror groups now pose the biggest threat to Britain since 9/11.

Begg claims he visited Syria in 2012 to visit wounded civilians.

His younger brother said: “We don’t think he’s done anything wrong.”