“We didn’t do nothing wrong, there was nothing found on us.”

The first man to speak to reporters after leaving custody said: “We just told them we were here for a holiday.

“We were going for a swim,” he said.

He said the arrest was a “misunderstanding”.

“To be honest with you, I’m as confused as you,” he told reporters.

The man said he “obviously” condemned the terrorist attack at Bondi Beach.

Asked if he held any extremist beliefs, he said: “Come on, mate.”

He said there was no need to be angry at police for what happened.

“They have their job to do, I don’t blame them for nothing, it was a misunderstanding.”

He said he “hopefully one day” would return to Melbourne, but was not sure if it would be on Friday or Saturday.

NSW Police said in a statement the men – aged between 19 and 24 – were released “pending further investigations”.

“Police acted quickly to prevent the advancement of any plan. There is no immediate safety risk to the community,” police said.

“Investigations will continue to review all available evidence and an investigation into the matter remains ongoing.”

A lawyer for the seven men, Ahmed Dib, said the group is considering suing police over injuries and damage to vehicles.

Dib said the men were not pursued and interdicted by the police because they were going to launch an attack, or because they were on a watch list. Instead, he said, someone reported overhearing the group talk about “Bondi 2.0”.

The men, all of whom were allegedly known to Victoria Police and under regular monitoring, were driving in two hatchbacks when they were intercepted on Thursday afternoon.

Tactical operations police dressed in camouflage and drawing heavy weapons pulled five men from one car at the intersection of George Street and Campbell Street in Liverpool, handcuffing them with zip ties. A second hatchback was intercepted a few blocks away, and two men were arrested.

In footage posted on social media, five men could be seen lying on the road and footpath. The vision shows one man whose head appears to be bleeding. In later footage, he appears to have been bandaged. Beanbag rounds were reportedly used to detain the men.

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NSW Police Deputy Commissioner Dave Hudson alleged on Friday morning that the men were inspired by the same Islamic extremist ideology as alleged Bondi terrorists Sajid and Naveed Akram.

“I think the ideology that we’re talking about very much increases our perceptions of threat and risk in relation to this environment,” Hudson told ABC Radio Sydney.

“We were in receipt of certain information from our Victorian counterparts, he said, adding NSW Police were “continually in contact” with those in Victoria “where these individuals emanate from”.

NSW Police Commissioner Mal Lanyon said, while the group was still in custody as at 12pm on Friday, the justification for their ongoing detention “no longer exists, subject to a review of evidence”.

“They haven’t been released at this stage, we’re still reviewing evidence to determine whether there’s a justification to detain them,” Lanyon said earlier.

“They will continue to be monitored whilst in NSW, and we will work closely with our Victorian and Commonwealth law enforcement partners.”

Police believe the men drove to Liverpool from Victoria, and according to Lanyon, “potentially” arrived on Wednesday.

One of the men said upon release they had stayed with a friend for a couple of days prior.

Earlier on Friday, Hudson said he expected charges to be laid against some of the individuals in the group, while others could walk free.

“It’s a balance when you investigate, for investigators and for the counter-terrorism police, as to interdicting at a point in time where you mitigate all risk and threat, which we did yesterday, or waiting until you can get a brief of evidence against individuals with a bow on it that you can present to court,” Hudson said.

Hudson said he held “significant concern” about the prospect of another public attack, and said the extraordinary tactics to detain the men were “the most appropriate for the circumstances”.

NSW Premier Chris Minns said he was “hugely concerned” about the prospect of further acts of terror following the Bondi attack, but was encouraged by the swift action taken by police against the seven men on Thursday.

“You can see that they’re [police] not mucking around,” Minns said. “I don’t think anyone in NSW wants them to muck around. If they perceive a threat, now and in the future, they will take immediate action.”

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