Bobbi Connell, 19, has been named by his grandfather as one of the men in the video and said he was 'utterly shocked' to see him in footage filmed on Saturday.
Bobbi is understood to have handed himself in to police with his father Cliff, 49, who hosted the shocking bonfire party at his home in South Norwood, south London, which has a scorched lawn today.
The teenager's grandfather David Connell told MailOnline: 'It's an appalling thing to do given the tragic loss of life. It's in dreadfully bad taste and utterly shocking and I don't condone it at all. I don't know what they were thinking.'
Bobbi and Cliff are believed be in Croydon Police Station with friend Paul Bussetti, 46, who lives in the neighbouring street.
Friend Mark Russell, 49, who lives around a two miles away in West Norwood with his wife of 27 years Debbie, was also in the film.
At least ten people including two women were at the party - it is still unclear which of the men in the crowd have handed themselves in after watching the 'Grenfell Guy' burn.
Mr Bussetti and his family, whose £500,000 home has a 'party animals' plaque in its porch, are scared for their safety after the joke 'got out of hand' having had 'a few too many drinks'.
A close relative told MailOnline: 'We're in so much danger now. They didn't want it to go this far. They are not racist. It's been blown out of proportion. It was horrible what they've done. Let them try and forget it'.
The five suspects, aged 19, 46, 49, 49 and 55, have all been arrested on suspicion of a public order offence but detectives will consider if they can also be prosecuted for hate crimes.
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