The man who disarmed one of the gunmen allegedly responsible for the Bondi beach terror attack has had an assault case against him tossed out.

Ahmed al-Ahmed, 44, had been accused of putting his father in a headlock on 9 March and intimidation over an alleged incident in June.

He pleaded not guilty to both charges in an appearance at Bankstown local court on 24 June, before prosecutors confirmed on Wednesday they had withdrawn both counts.

An apprehended domestic violence order protecting his father will remain in place for 12 months, court documents show.

In June, his lawyer, Mohamad Sakr, emphasised al-Ahmed would maintain his innocence.

“It is a family situation he never expected, one would never want to expect, and it must be really difficult for him,” he said.

“He is a heroic man and his honesty and dignity should be maintained until these matters are ultimately determined.”

When the charges were initially laid, al-Ahmed alleged members of his family were seeking a cut of the $2.5m raised on his behalf after he garnered international attention for his actions during the massacre.

“This situation is untrue, it’s extortion … and my two brothers have been harassing me, abusing me and pushing to get money from me,” he told Sydney radio 2GB in June.

His brothers, Sameh and Hozifa, were granted conditional bail in June after pleading not guilty to charges of using a carriage service to menace or harass, regarding claims they tried to extort $200,000 from their brother.

An interim domestic violence prevention order prohibits the pair from going within 100 metres of their brother, his home or workplace.

The tobacconist made headlines around the world after video footage of him disarming a gunman during the Bondi massacre went viral.

He was shot in the arm multiple times during the incident and was visited in hospital by the prime minister, Anthony Albanese.

He was awarded the keys to the city of Canterbury-Bankstown, where he lives, and Waverley, where the attack took place.