Kings Cross identity Fadi Ibrahim was released from jail on Wednesday night under strict bail conditions after a $2.2 million surety was met. 

Mr Ibrahim, the brother of nightclub boss John Ibrahim, has remained in custody since he was arrested in Dubai early last month when police struck an alleged international drug and tobacco syndicate.

After his bail was lodged, he was released from Silverwater Corrections Centre on Wednesday evening and driven away in a Range Rover. Under his bail conditions, Mr Ibrahim must live under effective house arrest in his clifftop Dover Heights mansion. 

The 43-year-old was granted bail last Monday after he was charged with funding crime and dealing with the proceeds of crime.

Mr Ibrahim had allegedly transferred $800,000 to his brother Michael Ibrahim, 39, to finance a tobacco trade in exchange for $1.6 million. Michael, the alleged head of the syndicate, remained in custody, charged with more than a dozen offences, including attempting to import a commercial quantity of drugs.

Prosecutor Matthew Kalyk had argued Fadi Ibrahim posed an unacceptable risk of fleeing Australia and interfering with witnesses.

"[He was] an active investor in his brother's operation," Mr Kalyk told Central Local Court. "They're brothers, they have a close relationship, the transfer is a very large amount of money."

Officers from Operation Veyda conducted a series of raids across Dubai and Sydney in August after an almost two-year investigation, seizing an alleged 1.8 tonnes of ecstasy, 136 kilograms of cocaine, 15 kilograms of ice and $5.5 million in cash.  

Police raided the home of John Ibrahim, nicknamed King of the Cross, but pressed no charges against him. 

His girlfriend, Sarah Budge, was charged with possessing an illegal firearm, a Glock pistol. His son, Daniel Taylor, was also arrested, accused of transferring $2.25 million to facilitate the importation of large quantities of tobacco.

Both have been granted bail.