Dalston Lane was closed off and an entire block of flats evacuated in the early hours this morning, after a suspected grenade was found during a police raid.
Cops had been conducting a firearms warrant when they discovered the device just before 2am.
As a precaution, about 10 minutes later, residents living in the block of flats nearby were evacuated and the London Ambulance Service and London Fire Brigade were called to the scene.
Specialist officers who examined and disposed of the device believe it could have been a paint grenade.
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Residents were able to return to their homes by 3am, and the road was reopened.
Four people - a 62-year-old man, a 37-year-old man, a 52-year-old woman and a 46-year-old woman - were arrested on suspicion of being in possession Class A drugs with intent to supply, possession of a taser firearm, and possession of an offensive weapon.
They were taken to an east London police station where they remain at this time, and enquiries continue.
A spokesperson for Scotland Yard said: Where there is any indication of possible danger or risk of injury to a member of the public, we will always take every possible precaution to prevent people coming to harm.
“Although this incident was dealt with quickly, we are grateful to the residents at the venue for their understanding and cooperation in leaving the building at such an inconvenient hour.”
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